Input the formulas need to calculate margin turnover roi

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Reference no: EM13574710

Input the formulas need to calculate margin, turnover, ROI and residual income.Check your worksheet by changing the average operating assets in cell B6 to $9,000,000, net operating income in cell B5 to $5,400,000 and the minimum required rate of return in cell B7 to 16%. The ROI should nw 60% and the residual income should now be $3,960,000. If you do not get these answers, find the errors in your worksheet and correct them.

Enter a formula into each of the cells marked with a ? below
Review Problem: Return on Investment (ROI) and Residual Income

Data:

  • Sales $25,000,000
  • Net operating income $3,000,000
  • Average operating assets $10,000,000
  • Minimum required rate of return 25%

Compute the ROI:

  • Margin ?
  • Turnover ?
  • ROI ?

Compute the residual income :

  1. Average operating assets ?
  2. Net operating income ?
  3. Minimum required return ?
  4. Residual income ?

Reference no: EM13574710

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