Analyzing the operations of anonymous companies


Response to the following problem:

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Negative amounts should be indicated by a minus sign. Do not round immediate calculations, but round your final answers to the nearest whole number. )


                                                              Company


A B C
Sales $ 400,000 $ 750,000 $ 600,000
Net operating income $ $ 45,000 $
Average operating assets $ 160,000 $ $ 150,000
Return on investment (ROI) 20% 18% %
Minimum required rate of return:


Percentage 15% % 12%
Dollar amount $ $ 50,000 $
Residual income $ $ $ 6,000

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Managerial Accounting: Analyzing the operations of anonymous companies
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