Question

Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $970,000 $213,400 (a) 12% (b) (c) $470,000 (d) (e) (f) $51,700 $23,500 $320,000 (g) 14% (h) $35,200 (i) $240,000 $48,000 (j) 12% (k) (l) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.

a. %

b. $

c. $

d. $

e. %

f. %

g. $

h. %

i. $

j. %

k. $

l. $

Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes: (b) Invested Income from Return on Minimum Minimum Acceptable Residual Assets Operations Investment Return Income from Operations Income $970,000 $213,400 12% $470,000 (d) $51,700 $23,500 $320,000 (9) 14% $35,200 (0) $240,000 $48,000 (k) Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number. 0) 22 % $116,400 $ 97,000 $ 75,200

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

2 Part B) C) D) Answer Answer 22 (213400/970000*100) 116400 (970000*12%) 97000 (213400-116400) 75200 (51700+23500) 16 (75200/470000*100) 11 (51700/470000*100) 44800 (320000*14%) 11 (35200/320000*100) 9600 (44800-35200) 20 (48000/240000*100) 28800 (240000*12%) 19200 (48000-28800) G) 26 H) % J) K) 23 24

D 28 Note Formula 29 Income from operations = invested assets* return on investments 30 31 Return on investments = income from operations/ invested assets 100 32 33 Minimum return = minimum acceptable income / invested assets 100 34 35 Minimum acceptable income invested assets* minimum return 36 37 Residual income = income from operations - minimum acceptable income 38