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	$3,060,000		$975,000
Net operating income	$336,600		$126,750
Average operating assets	$1,530,000				$2,560,000
Margin		%		%	7	%
Turnover					2.30
Return on investment (ROI)		%	3.90	%		%

Answer 1

Company A B C Sales $3,060,000 $975,000 412160*100/7 = 5888000 Net operating income $336,600 $126,750 2560000*16.10% = 412160 Average operating assets $1,530,000 126750*100/3.9 = 3250000 $2,560,000 Margin 336600*100/3060000 = 11% % 126750*100/975000 = 13% % 7 % Turnover 3060000/1530000 = 2 times 975000/3250000 = 0.30 Times 2.30 Return on investment (ROI) 336600*100/1530000 = 22% % 3.90 % 7*2.30 = 16.10 %