41 x fx Chapter 11: Applying Excel B 1 Chapter 11: Applying Excel 2 3 Data 4 Sales $25,000,000 5 Net operating income $3,000,000 6 Average operating assets $10,000,000 1 Minimum required rate of return 25% 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 12 Compute the ROI 13 Margin ? 14 Turnover ? 15 ROI ? 16 17 Compute the residual income 18 Average operating assets ? 19 Net operating income ? 20 Minimum required return ? 21 Residual income ? 22 23 ! Required information The Chapter 11 Form worksheet is to be used to create your own worksheet version of the Review Problem example in the text. Download the Applying Excel form and enter formulas in all cells that contain question marks. Verify that your worksheet matches the Review Problem in the text Check your worksheet by changing the average operating assets in cell B6 to $9,000,000. The ROI should now be 33% and the residual income should now be $750,000. If you do not get these answers, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click Save. You will use this we worksheet to answer the questions in Part 2 Requirement 2: Revise the data in your worksheet as follows: B 1 Chapter 11: Applying Excel 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minumum required rate of return 5 $ 12,000,000 $ 1,800,000 $ 3,000,000 24% If your formulas are correct, you should get the correct answers to the following questions a. What is the ROI? Answer is complete but not entirely correct. ROI 15 % b. What is the residual income? (Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Residual income $11,280,000 c. Why is the residual income positive