A12 Compute the ROI13 Margin14 Turnover15 ROI161 Chapter 10: Applying Excel23 Data4 Sales56 Average operating assets7 Minimum required rate of return89 Enter a formula into each of the cells marked with a ? below10 Review Problem: Return on Investment (ROI) and Residual Income11Net operating income17 Compute the residual income18 Average operating assets2223242526272829303132333419 Net operating income20 Minimum required return21 Residual incomeChapter 10 FormB+$25,000,000$3,000,000$10,000,00025%???C????DEFGH|JKL Chapter 10: Applying Excel: Exercise (Part 2 of 2)Required informationChapter 10: Applying Excel [LO10-1, LO10-2]The Chapter 10 Form worksheet is to be used to create your own worksheet version of the Review Problem example inthe text.Requirement 2:Revise the data in your worksheet as follows:1234567ROIAChapter 10: Applying ExcelDataSalesNet operating incomeAverage operating assetsMinumum required rate of returnIf your formulas are correct, you should get the correct answers to the following questions.a. What is the ROI?Residual incomeB%c. Why is the residual income positive?$ 52,000,000$ 7,280,000$ 13,000,00028%b. What is the residual income? (Negative amount should be indicated by a minus sign.)

You have asked two multiple questions which are not interlinked so we can only solve first question…

A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minimum required rate of retum 8 12 Compute the ROI 13 Margin 14 Tumover 15 ROI 16 17 Compute the residual income 18 Average operating assets 19 Net operating income 20 Minimum required retum 21 Residual income 22 23 24 25 26 27 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: Return on Investment (ROI) and Residual Income 11 28 29 30 31 32 33 34 Chapter 10 Form B + $25,000,000 $3,000,000 $10,000,000 25% ? ? ? C ? ? ? ? D E F G H I J K L

A 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minimum required rate of retum 8 12 Compute the ROI 13 Margin 14 Tumover 15 ROI 16 17 Compute the residual income 18 Average operating assets 19 Net operating income 20 Minimum required retum 21 Residual income 22 23 24 25 26 27 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: Return on Investment (ROI) and Residual Income 11 28 29 30 31 32 33 34 Chapter 10 Form B + $25,000,000 $3,000,000 $10,000,000 25% ? ? ? C ? ? ? ? D E F G H I J K L

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.16E

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