1. Determining Missing Items from Computations

   Data for the North, South, East, and West divisions of Free Bird Company are as follows:

   Sales

   Operating Income

   Invested Assets

   Return on Investment

   Profit Margin

   Investment Turnover

   North

   $860,000

   (a)

   (b)

   17.5%

   7.0%

   (c)

   South

   (d)

   $51,300

   (e)

   (f)

   4.5%

   3.8

   East

   $1,020,000

   (g)

   $680,000

   15.0%

   (h)

   (i)

   West

   $1,120,000

   $89,600

   $560,000

   (j)

   (k)

   (l)

   a. Determine the missing items, identifying each by the letters (a) through (l). If required, round percents and investment turnover to one decimal place.

   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

   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	$fill in the blank 13
   South Division	$fill in the blank 14
   East Division	$fill in the blank 15
   West Division	$fill in the blank 16

   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