Selected data from an investment center of IROL Incorporated follow:

Required:

1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI). 

2. Calculate residual income (RI).
 

Transcribed Image Text:

Sales Net book value of assets, beginning Net book value of assets, ending Net operating income Minimum rate of return $ 8,200,000 2,620,000 2,700,000 1,312,000 12% Sales Net book value of assets, beginning Net book value of assets, ending Net operating income Minimum rate of return $ 8,200,000 2,620,000 2,700,000 1,312,000 12%

Answer rating: 100% (QA)

1 Calculation of Return on Sales ROS Asset Turnover ... View the full answer