1 Chapter 11: Applying Excel 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minimum required rate of return $95,000,000 $13,300,000 $19,000,000 11% 9 Enter a formula into each of the cells marked with a ? below 10 Review Problem: Return on Investment (ROI) and Residual Income 12 Compute the ROI 13 Margin 14 Turnover 15 ROI 17 Compute the residual income 18 Average operating assets 19 Net operating income 20 Minimum required return 21 Residual income 22 Requieu nullaLlull If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? ROI b. What is the residual income? (Negative amount should be indicated by a minus sign.) Residual income c. Why is the residual income positive