Question: Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets
Determining missing items in return and residual income computations
Data are presented in the following table of returns on investment and residual incomes:
| Invested Assets | Operating Income | Return on Investment | Minimum Return on Investment | Minimum Acceptable Operating Income | Residual Income |
|---|---|---|---|---|---|
| $890,000 | $204,700 | (a) | 13% | (b) | (c) |
| $540,000 | (d) | (e) | (f) | $64,800 | $21,600 |
| $370,000 | (g) | 14% | (h) | $37,000 | (i) |
| $280,000 | $53,200 | (j) | 11% | (k) | (l) |
Determine the missing items, identifying each item by the appropriate letter. For all amounts, round to the nearest whole number.
| Item | Answer |
|---|---|
| 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 |
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