Data for Uberto Company are presented in the following table of rates of return
ID: 2529155 • Letter: D
Question
Data for Uberto Company are presented in the following table of rates of return on investment and residual incomes:
Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.
Invested Assets
Income from Operations
Return on Investment Minimum Return Minimum Acceptable Income from Operations
Residual Income $940,000 $206,800 (a) 12% (b) (c) $460,000 (d) (e) (f) $55,200 $18,400 $300,000 (g) 14% (h) $30,000 (i) $230,000 $43,700 (j) 11% (k) (l)
Explanation / Answer
Minimum Acceptable Income from Operations
(Minimum return*Invested assets)
Residual income
(Income from operations-Minimum acceptable income)
Invested assets Income from operations ROI(Income from operations/Invested assets) Minimum returnMinimum Acceptable Income from Operations
(Minimum return*Invested assets)
Residual income
(Income from operations-Minimum acceptable income)
940000 206800 22% 12% 112800 $94000 460000 73600 16% 12% 55200 18400 300000 42000 14% 10% 30000 12000 230000 43700 19% 11% 25300 18400Related Questions
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