Question
Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine
Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter.
|
Department |
Invested Assets |
Income from Operations |
Rate of Return on Investment |
Min. Rate of Return | Min. Amt. of Income from Operations |
Residual Income |
| Taek | (a) | (b) | (c) | 16% | P128,000 | P10,000 |
| Jung Hwan | P850,000 | P153,000 | (d) | 12% | (e) | (f) |
| Sun woo | P825,000 | (g) | 20% | (h) | (i) | P24,000 |
| Dong Ryong | (j) | P129,000 | 24% | (k) | P60,000 | (l) |
| (a) | Determine the missing items, identifying each by number. |
| (b) | Which division is most profitable in terms of income from operations? |
| (c) | Which division is most profitable in terms of rate of return on investment? |
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