Question

Supply the missing data
Sales: 9 mil
NOI: 540K
Average operating assets: 3mil
ROI: 18%
Percentage: 16%
Dollar amount-- [blank]
Residual Income-- [blank]

Answer 1

To find the missing data, we can use the formulas for ROI and Residual Income.

### Given Data:
- Sales: \( \$9,000,000 \)
- NOI: \( \$540,000 \)
- Average Operating Assets: \( \$3,000,000 \)
- ROI: \( 18\% \)
- Percentage: \( 16\% \) (this likely refers to the minimum required return)
- Dollar amount: [blank]
- Residual Income: [blank]

### Calculating the Dollar Amount
First, we can determine the dollar amount corresponding to the percentage (minimum required return) using the formula:

\[
\text{Minimum Required Return} = \text{Average Operating Assets} \times \text{Percentage}
\]

\[
\text{Minimum Required Return} = 3,000,000 \times 0.16 = 480,000
\]

### Calculating Residual Income
Residual Income (RI) is calculated using the formula:

\[
\text{Residual Income} = \text{NOI} - \text{Minimum Required Return}
\]

\[
\text{Residual Income} = 540,000 - 480,000 = 60,000
\]

### Summary of Missing Data:
- Dollar Amount (Minimum Required Return): \( 480,000 \)
- Residual Income: \( 60,000 \)

So, the completed data looks like this:

- Dollar Amount: \( 480,000 \)
- Residual Income: \( 60,000 \)