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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A
12 Compute the ROI
13 Margin
14 Turnover
15 ROI
16
1 Chapter 10: Applying Excel
2
3 Data
4 Sales
5
6 Average operating assets
7 Minimum required rate of return
8
9 Enter a formula into each of the cells marked with a ? below
10 Review Problem: Return on Investment (ROI) and Residual Income
11
Net operating income
17 Compute the residual income
18 Average operating assets
22
23
24
25
26
27
28
29
30
31
32
33
34
19 Net operating income
20 Minimum required return
21 Residual income
Chapter 10 Form
B
+
$25,000,000
$3,000,000
$10,000,000
25%
?
?
?
C
?
?
?
?
D
E
F
G
H
|
J
K
L
Transcribed Image Text:A 12 Compute the ROI 13 Margin 14 Turnover 15 ROI 16 1 Chapter 10: Applying Excel 2 3 Data 4 Sales 5 6 Average operating assets 7 Minimum required rate of return 8 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: Return on Investment (ROI) and Residual Income 11 Net operating income 17 Compute the residual income 18 Average operating assets 22 23 24 25 26 27 28 29 30 31 32 33 34 19 Net operating income 20 Minimum required return 21 Residual income Chapter 10 Form B + $25,000,000 $3,000,000 $10,000,000 25% ? ? ? C ? ? ? ? D E F G H | J K L
Chapter 10: Applying Excel: Exercise (Part 2 of 2)
Required information
Chapter 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 in
the text.
Requirement 2:
Revise the data in your worksheet as follows:
1
2
3
4
5
6
7
ROI
A
Chapter 10: Applying Excel
Data
Sales
Net operating income
Average operating assets
Minumum required rate of return
If your formulas are correct, you should get the correct answers to the following questions.
a. What is the ROI?
Residual income
B
%
c. Why is the residual income positive?
$ 52,000,000
$ 7,280,000
$ 13,000,000
28%
b. What is the residual income? (Negative amount should be indicated by a minus sign.)
Transcribed Image Text:Chapter 10: Applying Excel: Exercise (Part 2 of 2) Required information Chapter 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 in the text. Requirement 2: Revise the data in your worksheet as follows: 1 2 3 4 5 6 7 ROI A Chapter 10: Applying Excel Data Sales Net operating income Average operating assets Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? Residual income B % c. Why is the residual income positive? $ 52,000,000 $ 7,280,000 $ 13,000,000 28% b. What is the residual income? (Negative amount should be indicated by a minus sign.)
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