everal items are missing from the following table of rate of return on investmen

Question

everal items are missing from the following table of rate of return on investment and residual income. Determine the missing items. Round rate of return on investment and minimum rate of return to one decimal place when required. Invested Assets Income from Oper. Rate of Return on Inv. Min. Rate of Return Min. Amt. of Income from Oper. Residual Income $ 22,080 $ 138,000 6.25 % 16% $128,000 $10,000 $850,000 $153,000 18 % 12% $ 102,000 $ 51,000 $825,000 $ 165,000 20% 5 % $ 141,000 $24,000 $ 30,960 $129,000 24% 5 % $60,000 $ 69,000 i have some answers but i can figure it out the rest ...need help ...thank you

Explanation / Answer

Answer:

(a) $800,000 ($128,000/16%)

(b) $138,000 ($128,000 + $10,000)

(c) 17.3% ($138,000/$800,000)

(d) 18% ($153,000/$850,000)

(e) $102,000 ($850,000 ´ 12%)

(f) $51,000 ($153,000 - $102,000)

(g) $165,000 ($825,000 ´ 20%)

(h) 17.1% ($141,000/$825,000)

(i) $141,000 ($165,000 - $24,000)

(j) $537,500 ($129,000/24%)

(k) 11.2% ($60,000/$537,500)

(l) $69,000 ($129,000 - $60,000)

Invested Assets Income From operations Rate of Return on Investment Minimum rate of Return Minimum acceptable Income from operations Residual Income 800000 138000 17.30% 16% 128000 10000 850000 153000 18% 12% 102000 51000 825000 165000 20% 17.10% 141000 24000 537500 129000 24% 11.20% 60000 69000

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