Exercise 11-10 Name:
Enter the appropriate numbers/formulas in the shaded (gray) cells, or select from the drop-down list.
An asterisk (*) will appear in the column to the right of an incorrect answer.
Store A:
$50,000 $500,000 10.00%
$50,000 $35,000 $15,000
Store B:
=
ROI
Operating
Income
/
=
Residual
Income
Instructor
ROI
Operating
Income
/
Average
Operating
Assets
=
Operating
Income
–
(7% of Average
Operating
Assets)
Average
Operating
Assets
$70,000 $56,000 $14,000
Store A
is earning a higher return on invested assets.