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 a. $940,000 $600,000 $360,000 $270,000 b. C. d. e. (c) $30,000 (1) (1) Determine the missing items, identifying each item by the appropriate letter. For all amounts, round to the nearest whole number. f. g. h. i. j. k. I. $ $ $ $235,000 (d) (g) $51,300 % % % % Return on Investment (a) (e) 14% (j) % Minimum Return on Investment 14% (f) (h) 11% Minimum Acceptable Operating Income (b) $66,000 $36,000 (k) Residual Income
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 a. $940,000 $600,000 $360,000 $270,000 b. C. d. e. (c) $30,000 (1) (1) Determine the missing items, identifying each item by the appropriate letter. For all amounts, round to the nearest whole number. f. g. h. i. j. k. I. $ $ $ $235,000 (d) (g) $51,300 % % % % Return on Investment (a) (e) 14% (j) % Minimum Return on Investment 14% (f) (h) 11% Minimum Acceptable Operating Income (b) $66,000 $36,000 (k) Residual Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
$940,000
Operating
Income
$235,000
$600,000
(d)
$360,000
(g)
$270,000
$51,300
Residual
Income
(c)
$30,000
(1)
(1)
Determine the missing items, identifying each item by the appropriate letter. For all amounts, round to the nearest whole number.
a.
b.
C.
d.
e.
f.
g.
h.
i.
j.
k.
I.
$
$
$
%
%
%
%
%
Return on
Investment
(a)
(e)
14%
(j)
Minimum Return
on Investment
14%
(f)
(h)
11%
Minimum Acceptable
Operating Income
(b)
$66,000
$36,000
(k)
Transcribed Image Text:Profit margin, investment turnover, and ROI
Lewis Company has operating income of $30,450, invested assets of $145,000, and sales of $435,000. Use the DuPont formula to compute the return on investment. Round your answers to two decimal places.
a. Profit margin
b. Investment turnover
c. Return on investment
%
%
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