Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.)

 

Company
A
C
Sales
$
320,000
2$
820,000
$
630,000
Net operating income
2$
49,000
Average operating assets
2$
158,000
2$
141,000
Return on investment (ROI)
21 %
18 %
%
Minimum required rate of return:
Percentage
15 %
%
12 %
Dollar amount
2$
48,000
Residual income
2$
6,000
Transcribed Image Text:Company A C Sales $ 320,000 2$ 820,000 $ 630,000 Net operating income 2$ 49,000 Average operating assets 2$ 158,000 2$ 141,000 Return on investment (ROI) 21 % 18 % % Minimum required rate of return: Percentage 15 % % 12 % Dollar amount 2$ 48,000 Residual income 2$ 6,000
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