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Determining missing items in return on investment and residual income computations The following table presents various rates of return on investment and residual incomes: Invested
Determining missing items in return on investment and residual income computations
The following table presents various rates of return on investment and residual incomes:
Invested Assets | Operating Income | Return on Investment | Minimum Rate of Return | Minimum Acceptable Operating Income | Residual Income | ||||||
$880,000 | $228,800 | (a) | 15% | (b) | (c) | ||||||
540,000 | (d) | (e) | (f) | $59,400 | $27,000 | ||||||
350,000 | (g) | 14% | (h) | 38,500 | (i) | ||||||
260,000 | 54,600 | (j) | 13% | (k) | (l) |
Determine the missing items, identifying each item by the appropriate letter.
Round dollar amounts to the nearest whole number.
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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