Check your worksheet by changing the average operating assets in cell B6 to $9000000 net operating income in cell B5 to $5400000 and the minimum required rate
of return in cell B7 to 16%. The ROI should nw 60% and the residual income should now be $3960000. 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 $25000000
Net operating income $3000000
Average operating assets $10000000
Minimum required rate of return 25% Compute the ROI: Margin ?
Turnover ?
ROI ? Compute the residual income : Average operating assets ?
Net operating income ?
Minimum required return ?
Residual income ?