Question

Performance Evaluation

Company	A	B	C
Sales	$16,000,000	$10,000,000	$12,000,000
Operating Expenses	$15,200,000	$9,200,000	$10,800,000
Total Assets	$8,000,000	$4,000,000	$8,000,000
Stockholders' Equity	$1,500,000	$700,000	$1,600,000
Target Rate of Return	8%	15%	10%

Show your work for full or for partial credit.

A) Please provide the sales margin for company A:

B) The capital turnover for company A is:

C) Please provide the return on investment for company B:

D) The residual income for company C is:

Answer 1