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Determining Missing Items from Computations Data for the North, South, East and West divisions of Free Bird Company are as follows: Rate of Return on
Determining Missing Items from Computations Data for the North, South, East and West divisions of Free Bird Company are as follows: Rate of Return on Profit Income from Invested Investment Sales Investment Margin Operations Assets Turnover North $860,000 (a) (b) 17.5% 7.0% (c) South (d) $51,300 (e) (f) 4.5% 3.8 East $1,020,000 (9) $680,000 15.0% (h) (1) West $1,120,000 $89,600 $560,000 6) (k) (1) a. Determine the missing items, identifying each by the letters (a) through (1). If required, round percents and investment turnover to one decimal place. a. $ b. $ c. d. $ e. f. % g h. % i. j. % % b. c. d. e. f. % g. h. % i. j. % k. % I. b. Determine the residual income for each division, assuming that the minimum acceptable rate of return established by management is 12%. Division Residual Income North Division South Division East Division III West Division C. Which division is the most profitable in terms of (1) return on investment and (2) residual income? Most Profitable 1. Return on Investment 2. Residual Income
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