Question

Supply the missing data
Sales: 4.5mil
NOI: [blank] (not 270k)
Average operating assets: 1.8mil
ROI [blank] (not 15%)
Percentage: 15%
Dollar amount: 270k
Residual income: 90k

Answer 1

To fill in the missing data, we can use the given relationships between the sales, net operating income (NOI), average operating assets, return on investment (ROI), and residual income.

1. **Calculating NOI**:
We know that:
\[
\text{Residual Income} = \text{NOI} - (\text{Average Operating Assets} \times \text{Percentage})
\]
Rearranging this gives us:
\[
\text{NOI} = \text{Residual Income} + (\text{Average Operating Assets} \times \text{Percentage})
\]

Substituting in the values:
\[
\text{NOI} = 90,000 + (1,800,000 \times 0.15)
\]
\[
\text{NOI} = 90,000 + 270,000
\]
\[
\text{NOI} = 360,000
\]

2. **Calculating ROI**:
ROI is calculated as:
\[
\text{ROI} = \frac{\text{NOI}}{\text{Average Operating Assets}} \times 100
\]

Substituting the calculated NOI:
\[
\text{ROI} = \frac{360,000}{1,800,000} \times 100
\]
\[
\text{ROI} = 20\%
\]

Now we have filled in the missing data:
- **NOI**: 360,000
- **ROI**: 20%

**Summary**:
- Sales: 4.5 million
- NOI: 360,000
- Average operating assets: 1.8 million
- ROI: 20%
- Percentage: 15%
- Dollar amount: 270,000
- Residual income: 90,000