Question

Comparative data on three companies in the same service industry are given below.

Required:

2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.)

	Company
	A		B		C
Sales	$4,906,000		$2,744,000
Net operating income	$735,900		$548,800
Average operating assets	$2,230,000				$2,580,000
Margin		%		%	6	%
Turnover					1.60
Return on investment (ROI)		%	16.00	%		%

Answer 1

	Company A B C Sales $4,906,000 $2,744,000 247680*100/6 = 4128000 Net operating income $735,900 $548,800 2580000*9.6% = 247680 Average operating assets $2,230,000 548800*100/16 = 3430000 $2,580,000 Margin 735900/4906000 = 15% % 548800/2744000 = 20% % 6 % Turnover 4906000/2230000 =2.20 Times 2744000/3430000 = 0.80 Times 1.60 Return on investment (ROI) 735900/2230000 = 33% % 16.00 % 6*1.6 = 9.6% %