Question: Determining Missing Items from Computations Data for the North, South, East, and West divisions of Free Bird Company are as follows: Profit Investment Operating Income


Determining Missing Items from Computations Data for the North, South, East, and West divisions of Free Bird Company are as follows: Profit Investment Operating Income Invested Assets Return on Investment Sales Margin Turnover North $860,000 (a) (b) 17.5% 7.0% (c) South (d) $51,300 (e) 4.5% 3.8 East $1,020,000 (9) $680,000 15.0% (h) West $1,120,000 $89,600 $560,000 (k) (1) a. Determine the missing items, identifying each by the letters (a) through (1). If required, round percents and investment turnover to one decimal place. a. $ b. $ C. d. e. $ f. % g. $ h. % f. % g. % h. 1. j. % k % 1. b. Determine the residual income for each division, assuming that the minimum acceptable return on investment established by management is 12%. Division Residual Income North Division $ South Division East Division West Division c. Which division is the most profitable in terms of (1) return on investment and (2) residual income? Most Profitable 1. Return on Investment 2. Residual Income
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