Determining missing items in return and residual income computations Data for Ub
ID: 2527498 • Letter: D
Question
Determining missing items in return and residual income computations
Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes:
Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.
Invested Assets
Income from Operations
Return on Investment Minimum Return Minimum Acceptable Income from Operations
Residual Income $940,000 $244,400 (a) 15% (b) (c) $510,000 (d) (e) (f) $61,200 $20,400 $300,000 (g) 14% (h) $33,000 (i) $230,000 $46,000 (j) 12% (k) (l)
Explanation / Answer
Invested Income from Return on Minimum Minimum Alternative Residual Assets Operations Investment Return Income Income 940000 244,400 26% 15% 141,000 103,400 510000 81600 16% 12% 61,200 20,400 300000 42000 14% 11% 33,000 9,000 230000 46000 20% 12% 27600 18,400 a. 26% b. 141000 c. 103400 d. 81600 e. 16% f. 12% g. 42000 h. 11% i. 9000 j 20% k. 27600 l. 18400
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