Question

Data on three unrelated companies are given in the following table Fill in the missing information...

Data on three unrelated companies are given in the following table

Fill in the missing information in the preceding table. ​(Enter the capital turnover to two decimal places​ X.XX.)

Preston, Inc.

Sales. . . . . . . . . . . . . . . . . . . . . . .

$116,000

Operating income. . . . . . . . . . . . .

$46,400

Total assets. . . . . . . . . . . . . . . . . .

$80,000

Sales margin. . . . . . . . . . . . . . . . .

%

Capital turnover. . . . . . . . . . . . . . .

Return on investment (ROI). . . . .

%

Target rate of return. . . . . . . . . . . .

12

%

Residual income. . . . . . . . . . . . . .

Data Table

Preston, Inc.

Gammaro Company

Johnson Industries

Sales. . . . . . . . . . . . . . . . . . . . . . . . .

$116,000

?

$484,000

Operating income. . . . . . . . . . . . . .

$46,400

$110,600

?

Total assets. . . . . . . . . . . . . . . . . . .

$80,000

?

?

Sales margin. . . . . . . . . . . . . . . . . .

?

14%

10%

Capital turnover. . . . . . . . . . . . . . .

?

4.00

?

Return on investment (ROI). . . . .

?

?

22%

Target rate of return. . . . . . . . . .

12%

21%

?

Residual income (RI). . . . . . . . . . .

?

?

$4,400
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Answer #1
  • Requirements asked

Preston, Inc.

Gammaro Company

Johnson Industries

Sales. . . . . . . . . . . . . . . . . . . . . . . . .

$116,000

$790,000

$484,000

Operating income. . . . . . . . . . . . . .

$46,400

$110,600

$48,400

Total assets. . . . . . . . . . . . . . . . . . .

$80,000

$197,500

$220,000

Sales margin. . . . . . . . . . . . . . . . . .

40%

14%

10%

Capital turnover. . . . . . . . . . . . . . .

1.45

4

2.2

Return on investment (ROI). . . . .

58%

56%

22%

Target rate of return. . . . . . . . . .

12%

21%

20%

Residual income (RI). . . . . . . . . . .

$36,800

$69,125

$4,400

--working

Preston, Inc.

Gammaro Company

Johnson Industries

Sales. . . . . . . . . . . . . . . . . . . . . . . . .

116000

=110600/14%

484000

Operating income. . . . . . . . . . . . . .

46400

110600

=484000*10%

Total assets. . . . . . . . . . . . . . . . . . .

80000

=790000/4

=48400/22%

Sales margin. . . . . . . . . . . . . . . . . .

=46400/116000

0.14

0.1

Capital turnover. . . . . . . . . . . . . . .

=116000/80000

4

=484000/220000

Return on investment (ROI). . . . .

=46400/80000

=110600/197500

0.22

Target rate of return. . . . . . . . . .

0.12

0.21

=+(48400-4400)/220000

Residual income (RI). . . . . . . . . . .

=46400-(80000*12%)

=110600-(197500*21%)

4400

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