Purchase Solution

Return On Investment (ROI) and Residual Income

Not what you're looking for?

Ask Custom Question

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. Show the formulas used:

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 Return Rate
Percentage 15% % ? 12%
Dollar Amount $ ? $50,000 $ ?
Residual Income $ ? $ ? $6,000

Purchase this Solution

Solution Summary

The solution explains how to determine the missing amounts using return on investment and residual income calculations.

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.