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 $3,315,000   $2,776,000   Net operating income $464,100 $388,640 Average operating assets $1,950,000 $3,000,000   Margin % % 3 % Turnover 2.00 Return on investment (ROI) % 11.20 % %

Answer 1

	Company
	A	B	C
Sales	3315000	2776000	6000000 [ Average operating assets * Turnover = 3000000 * 2.00 ]
Net operating income	464100	388640	180000 [ Sales * Margin = 6000000 * 3% ]
Average operating assets	1950000	3470000 [ Net operating income / ROI = 388640 / 11.20% ]	3000000
Margin	14% [ Net operating income / Sales = 464100 / 3315000 ]	14% [ Net operating income / Sales = 388640 / 2776000 ]	3%
Turnover	1.70 [ Sales / Average operating assets = 3315000 / 1950000 ]	0.80 [ Sales / Average operating assets = 2776000 / 3470000 ]	2.00
Return on Investment (ROI)	23.80% [ Net operating income / Average operating assets = 464100 / 1950000 ]	11.20%	6.00% [ Net operating income / Average operating assets ]