Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter.         Department     Invested Assets   Income from Operations   Rate of Return on Investment   Min. Rate of Return Min. Amt. of Income from Operations     Residual Income Taek (a) (b) (c) 16% P128,000 P10,000 Jung Hwan P850,000 P153,000 (d) 12% (e) (f) Sun woo P825,000 (g) 20% (h) (i) P24,000 Dong Ryong (j) P129,000 24% (k) P60,000 (l)     (a) Determine the missing items, identifying each by number. (b) Which division is most profitable in terms of income from operations? (c) Which division is most profitable in terms of rate of return on investment?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter.

 

 

 

 

Department

 

 

Invested

Assets

 

Income

from

Operations

 

Rate of

Return

on Investment

 

Min.

Rate of

Return

Min. Amt.

of Income

from

Operations

 

 

Residual

Income

Taek

(a)

(b)

(c)

16%

P128,000

P10,000

Jung Hwan

P850,000

P153,000

(d)

12%

(e)

(f)

Sun woo

P825,000

(g)

20%

(h)

(i)

P24,000

Dong Ryong

(j)

P129,000

24%

(k)

P60,000

(l)

 

 

(a)

Determine the missing items, identifying each by number.

(b)

Which division is most profitable in terms of income from operations?

(c)

Which division is most profitable in terms of rate of return on investment?

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