Question

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

Companies in the Same Industry
A B C
Sales $600,000 $500,000
Net operating income $84,000 $70,000
Average operating assets $300,000 $1,000,000
Margin ?% ? % 3.5%
Turnover ? times ? times 2.00 times
Return on investment (ROI) ?% 7% ?%

Required:
Fill in the missing information. (Round the "Margin" answers to 1 decimal place and "Turnover" answers to 2 decimal places.)

Answer 1

Answer:

Margin=Net operating income/Sales

turnover=Sales/Average operating assets

ROI=Net operating income/Average operating assets

                                                            A           B                       C

Sales                                          600,000 500,000   2,000,000

Net operating income                  84000         70000         70,000

Average operating assets          300,000 1,000,000 1,000,000

Margin                                               14%                   14%             3.5%

Turnover                                                2                0.5               2

ROI                                                       28%                  7%               7%

Explanation: