Question

Data for Uberto Company are presented in the following table of returns on investment and residual incomes: Minimum Minimum Acceptable Income Invested Return on Return on Income from Residual from Assets Investment Investment Operations Income Operations $925,000 $185,000 (a) 15% (c) (b) $775,000 (d) (e) () $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (1) $610,000 $97,600 12% (k) (1) Determine the missing values, identifying each item by the appropriate letter. a. % b. C. d. % f. g. h. I. % k. I.

Answer 1

rate positively .. let me know if you need any clarification..

	invested amount	Income from operations	Return on investment	Minimum return on investment	minimum acceptable income from operation	Residual income
	925000	185000	a)	15%	b)	c)
	775000	d)	e)	f)	93000	23250
	450000	g)	18%	h)	58500	i)
	610000	97600	j)	12%	k)	l)
Note answer need to compute in given sequense .. Later we will put the same in sequence
a)	Income/Amount invested =		185000/925000		20.00%
b)	Minimum acceptable income = 925000*15%				138750
c)	residual income = income from operation - minimum acceptable income				46250
d)	(minimum return + residual return)				116,250
e)	Income/Amount invested =				15%
f)	Minimum acceptable income/invested amount =				12%
g)	Amount invested* return on investment				81000
h)	Minimum acceptable income/invested amount =				13%
i)	income from opration - residual income				22500
j)	Income/Amount invested =				16%
k)	Amt invested * minimum accetable return				73200
l)	income from opration - residual income				24400