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Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets
Determining missing items in return and residual income computations
Data are presented in the following table of returns on investment and residual incomes:
Invested Assets | Operating Income | Return on Investment | Minimum Return on Investment | Minimum Acceptable Operating Income | Residual Income |
---|---|---|---|---|---|
$800,000 | $184,000 | (a) | 13% | (b) | (c) |
$560,000 | (d) | (e) | (f) | $67,200 | $22,400 |
$370,000 | (g) | 14% | (h) | $37,000 | (i) |
$280,000 | $56,000 | (j) | 12% | (k) | (l) |
Determine the missing items, identifying each item by the appropriate letter. For all amounts, round to the nearest whole number.
Item | Answer |
---|---|
a. | fill in the blank 1 % |
b. | $fill in the blank 2 |
c. | $fill in the blank 3 |
d. | $fill in the blank 4 |
e. | fill in the blank 5 % |
f. | fill in the blank 6 % |
g. | $fill in the blank 7 |
h. | fill in the blank 8 % |
i. | $fill in the blank 9 |
j. | fill in the blank 10 % |
k. | $fill in the blank 11 |
l. | $fill in the blank 12 |
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