Determining missing items in rate of return and residual income computations OBJ

Question

Determining missing items in rate of return and residual income computations OBJ. 4 Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes Minimum Rate of Return on Acceptable Operations $93,000 Minimum Rate of Return Income Invested Assets $925,000 775,000 $450,000 610,000 from Income from Residual Income Operations Investment $185,000 15% $23,250 18% $58,500 $97,600 1296 (ID) Determine the missing items, identifying each item by the appropriate letter Check Figure: $46,250

Explanation / Answer

Note: Calculations are shown in brackets under each computed cell.

Invested Assets Income from Operations Rate of Return on Investment Minimum Rate of Return Minimum Acceptable Income from Operations Residual Income (A) (B) (C) = (B) / (A) (D) = (E) / (A) (E) = (D) x (A) (F) = (B) - (E) 1 925000 185000 20% 15% 138750 46250 (185000 / 925000) (15% x 925000) (185000 - 138750) 2 775000 116250 15% 12% 93000 23250 (93000 + 23250) (116250 / 775000) (93000 / 775000) 3 450000 81000 18% 13% 58500 22500 (18% x 450000) (58500 / 450000) (81000 - 58500) 4 610000 97600 16% 12% 73200 24400 (97600 / 610000) (12% x 610000) (97600 - 73200)

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.