Chapter 11: Applying Excel Data Sales Net operating income Average operating assets Minimum required rate of return $35,000,000 $5,000,000 $50,000,000 12% Enter a formula into each of the cells marked with a ? below Review Problem: Return on Investment (ROI) and Residual Income Compute the ROI Margin Turnover ROI 2 Compute the residual income Average operating assets Net operating income Minimum required return Residual income ? ? ? ? Page 1 EXPLAIN WHY THE ROI AND THE RESIDUAL INCOME BOTH INCREASE WHEN THE AVERAGE OPERATING ASSETS DECREASE