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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