Return on investment

The income from operations and the amount of invested assets in each division of Beck Industries are as follows:

	Income from Operations		Invested Assets
Retail Division	$111,300		$530,000
Commercial Division	115,200		640,000
Internet Division	147,500		590,000

a. Compute the return on investment for each division. (Round to the nearest whole number.)

Division	Percent
Retail Division	fill in the blank 1 %
Commercial Division	fill in the blank 2 %
Internet Division	fill in the blank 3 %

b. Which division is the most profitable per dollar invested?

Residual Income

The income from operations and the amount of invested assets in each division of Beck Industries are as follows:

	Income from Operations		Invested Assets
Retail Division	$110,000		$550,000
Commercial Division	118,800		540,000
Internet Division	85,000		340,000

Assume that management has established a 8% minimum acceptable return for invested assets.

a. Determine the residual income for each division.

	Retail Division			Commercial Division			Internet Division
Income from operations	$110,000			$118,800			$85,000
Minimum acceptable income from operations as a percent of invested assets	fill in the blank 1			fill in the blank 2			fill in the blank 3
Residual income	$fill in the blank 4			$fill in the blank 5			$fill in the blank 6

b. Which division has the most residual income?