Determining Missing Items from Computations

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

Sales

Income from Operations

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.

Determining Missing Items from Computations Data for the North, South, East, and West divisions of Free Bird Company are as follows: Income from Invested Return on Profit Investment Sales Operations Assets Investment Margin Turnover North $850,000 (b) 17.5% 7.0% South (d) $51,300 (e) (f) 4.5% 3.8 East $1,020,000 (9) $680,000 15.0% (h) (0) West $1,120,000 $89,600 $560,000 6) (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. % 9. h. % i. j. % k. % 1. b. Determine the residual income for each division, assuming that the minimum acceptable return established by management is 12%. Division Residual Incor 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