Margin, Turnover, ROI Required: 1. Consider the data for each of the following four independent companies. Calculate the missing values in the table below. For margin and ROI, enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. For turnover, enter your answer as a decimal value rounded to two decimal places. A Revenue $12,500 B $49,000 C D $96,000 Expenses $10,000 $90,240 Operating income $2,500 $14,700 Assets $50,000 $48,000 $9,500 Margin % 30% % 6.00% Turnover 0.50 2.00 ROI % % % % A's residual income 2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is negative, enter a negative amount. B's residual income C's residual income D's residual income 0000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Margin, Turnover, ROI
Required:
1. Consider the data for each of the following four independent companies. Calculate the missing values in the table below. For margin and ROI, enter
your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. For
turnover, enter your answer as a decimal value rounded to two decimal places.
A
Revenue
$12,500
B
$49,000
C
D
$96,000
Expenses
$10,000
$90,240
$
Operating income
$2,500
$14,700
Assets
$50,000
$48,000
$9,500
Margin
%
30%
%
6.00%
Turnover
0.50
2.00
ROI
%
%
%
%
2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is
negative, enter a negative amount.
A's residual income
B's residual income
C's residual income
D's residual income
Transcribed Image Text:Margin, Turnover, ROI Required: 1. Consider the data for each of the following four independent companies. Calculate the missing values in the table below. For margin and ROI, enter your answers as percentages, rounded to two decimal places. For example, the decimal value .03827 would be entered as "3.83" percent. For turnover, enter your answer as a decimal value rounded to two decimal places. A Revenue $12,500 B $49,000 C D $96,000 Expenses $10,000 $90,240 $ Operating income $2,500 $14,700 Assets $50,000 $48,000 $9,500 Margin % 30% % 6.00% Turnover 0.50 2.00 ROI % % % % 2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the four firms. If the residual income is negative, enter a negative amount. A's residual income B's residual income C's residual income D's residual income
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