Question

Several items are missing from the following table of rate of return on investment and residual...

Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter (a–l). Round percentage values to one decimal point

Division

Invested
Assets

Income
from
Oper.

Rate of
Return
on Inv.

Min.
Rate of
Return

Min. Amt.
of Income
from
Oper.

Residual
Income

East

(a)

(b)

(c)

16%

$128,000

$10,000

West

$850,000

$153,000

(d)

12%

(e)

(f)

North

$825,000

(g)

20%

(h)

(i)

$24,000

South

(j)

$129,000

24%

(k)

$60,000

(l)

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

0 0
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Answer #1
Invested Income Rate of Min. Min. Amt. Residual
Division Assets from Return Rate of of Income Income
Oper. on Inv. Return from
Oper.
East $     8,00,000 $   1,38,000 17.25% 16.00% $ 1,28,000 #######
West $     8,50,000 $   1,53,000 18.00% 12.00% $ 1,02,000 #######
North $     8,25,000 $   1,65,000 20% 17.09% $ 1,41,000 #######
South $     5,37,500 $   1,29,000 24% 11.16% $    60,000 #######
(a) $         8,00,000
(b) $         1,38,000
(c) 17.25%
(d) 18.00%
(e) $         1,02,000
(f) $            51,000
(g) $         1,65,000
(h) 17.09%
(i) $         1,41,000
(j) $         5,37,500
(k) 11.16%
(l) $            69,000
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