1. Determining Missing Items from Computations

   Data for the North, South, East and West divisions of Free Bird Company are as follows:

   Sales

   Income from Operations

   Invested Assets

   Return on Investment

   Profit Margin

   Investment 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

   (g)

   $680,000

   15.0%

   (h)

   (i)

   West

   $1,120,000

   $89,600

   $560,000

   (j)

   (k)

   (l)

   a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place.

   a.	$
   b.	$
   c.
   d.	$
   e.	$
   f.											%
   g.	$
   h.											%
   i.
   j.											%
   k.											%
   l.

   b. Determine the The excess of divisional income from operations over a minimum acceptable income from operations.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	$
   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	North East South West
   2. Residual Income	North East South West