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Company A B C Sales $330,000 $800,000 $580,000 Net operating income $41,000 Average operating assets $160,000...

Company
A B C
Sales $330,000 $800,000 $580,000
Net operating income $41,000
Average operating assets $160,000 $153,000
Return on investment (ROI) 16 % 16 % %
Minimum required rate of return:
Percentage 14 % 20 % 14 %
Dollar amount $50,000
Residual income $6,000
Business   Accounting   
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Answer #1
Company
A B C
Sales 330000 800000 580000
Net Operating income 25600 41000 27420
Average operating assets 160000          256,250 153000
Return on Investment (ROI) 16% 16% 18%
Minimum rate of return
     Percentage 14% 20% 14%
     Dollar 22400 50000 21420
Residual Income 3200 -9000 6000
Residual income = ROI(IN DOLLAR) - Minimum rate of return(DOLLAR)
Net operating income = average operating asset * ROI
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