Chapter 11: Applying Excel e s Data Sales $25,000,000 5 Net operating income $3,000,000 Average operating assets $10,000,000 Minimum required rate of return 25% 3 Enter a formula into each of the cells marked with a ? below o Review Problem: Return on Investment (ROI) and Residual Income 1 1 2 Compute the ROI 3. Margin ? 4 Turnover ? 5 ROI ? 6 7 Compute the residual income 8 Average operating assets ? 9 Net operating income ? 0 Minimum required return ? 1 Residual income ? Requirement 2: Revise the data in your worksheet as follows: B 1 Chapter 11: Applying Excel 2 2 3 Data 4 Sales 5 Net operating income 6 Average operating assets 7 Minumum required rate of return $ 36,000,000 $ 3,960,000 $ 9,000,000 21% 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