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\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|l|}{ (amounts in thousands) } \\
\hline Sales & [tex]$\$[/tex] 33,750[tex]$ & $[/tex]\[tex]$ 24,750$[/tex] & \\
\hline Cost of Goods Sold & [tex]$\underline{21,938}$[/tex] & 16,830 & \\
\hline Gross Profit & [tex]$\$[/tex] 11,812[tex]$ & $[/tex]\[tex]$ 7,920$[/tex] & \\
\hline Wages & [tex]$\$[/tex] 8,775[tex]$ & $[/tex]\[tex]$ 6,188$[/tex] & \\
\hline Utilities & 675 & & 250 \\
\hline Repairs & 169 & & 325 \\
\hline Selling & 506 & 200 & \\
\hline Total Expenses & [tex]$\$[/tex] 10,125[tex]$ & $[/tex]\[tex]$ 6,963$[/tex] & \\
\hline Operating Income & 1,687 & & 957 \\
\hline Operating Income \% & [tex]$5 \%$[/tex] & & [tex]$7 \%$[/tex] \\
\hline Total Assets (investment base) & [tex]$\$[/tex] 4,500[tex]$ & $[/tex]\[tex]$ 7,000$[/tex] & \\
\hline Return on Investment & 0.3742 & & [tex]$?$[/tex] \\
\hline Residual Income ( [tex]$8 \%$[/tex] cost of capital) & 1,327 & & \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Sure, let's go through each step needed to solve for the missing Return on Investment (ROI) in the provided table.

1. Identify Operating Income and Investment Base:
For the column with the missing ROI:
- Operating Income = 957 (thousands)
- Investment Base (Total Assets) = 7,000 (thousands)

2. Calculate the Return on Investment:
ROI is calculated as:
[tex]\[ \text{ROI} = \frac{\text{Operating Income}}{\text{Investment Base}} \][/tex]

3. Substitute the given values into the formula:
So, using the provided values:
[tex]\[ \text{ROI} = \frac{957}{7000} \][/tex]

4. Compute the Result:
When we perform this division, the result is:
[tex]\[ \text{ROI} \approx 0.1367 \][/tex]

So, the Return on Investment for the given values is approximately 0.1367, or 13.67%. Therefore, the missing value in the table for the Return on Investment (ROI) should be approximately 0.1367.

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