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Determining Missing Items in Rate of Return and The excess of divisional income from operations over a minimum acceptable income from operations.Residual Income Computations Data
Determining Missing Items in Rate of Return and The excess of divisional income from operations over a minimum acceptable income from operations.Residual Income Computations
Data for Schmidt Company are presented in the following table of A measure of managerial efficiency in the use of investments in assets, computed as income from operations divided by invested assets.rates of return on investment and residual incomes:
Invested Assets | Income from Operations | Rate of Return on Investment | Minimum Rate of Return | Minimum Acceptable Income from Operations | Residual Income | ||||||
$960,000 | $230,400 | (a) | 13% | (b) | (c) | ||||||
$570,000 | (d) | (e) | (f) | $68,400 | $22,800 | ||||||
$340,000 | (g) | 14% | (h) | $37,400 | (i) | ||||||
$260,000 | $52,000 | (j) | 12% | (k) | (l) |
Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.
a. | % | ||||||||
b. | $ | ||||||||
c. | $ | ||||||||
d. | $ | ||||||||
e. | % | ||||||||
f. | % | ||||||||
g. | $ | ||||||||
h. | % | ||||||||
i. | $ | ||||||||
j. | % | ||||||||
k. | $ | ||||||||
l. | $ |
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