eBook Show Me How Margin, Turnover, ROI Required: 1. Consider the data for...

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Accounting

  1. eBook

    Show Me How

    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 B C D
    Revenue $10,000 $48,000 $96,000 $fill in the blank 1
    Expenses $8,000 $fill in the blank 2 $90,240 $fill in the blank 3
    Operating income $2,000 $14,400 $fill in the blank 4 $fill in the blank 5
    Assets $40,000 $fill in the blank 6 $48,000 $9,800
    Margin fill in the blank 7 % 30 % fill in the blank 8 % 6.00 %
    Turnover fill in the blank 9 0.50 fill in the blank 10 2.00
    ROI fill in the blank 11 % fill in the blank 12 % fill in the blank 13 % fill in the blank 14 %

    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 $fill in the blank 15
    B's residual income $fill in the blank 16
    C's residual income $fill in the blank 17
    D's residual income $fill in the blank 18

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