Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. determining missing items in return and residual i

Determining missing items in return and residual income computations Data for Uberto Company are presented in the...

Free

80.2K

Verified Solution

Question

Accounting

  1. Determining missing items in return and residual incomecomputations

    Data for Uberto Company are presented in the following table ofrates of return on investment and residual incomes:


    Invested Assets
    Income from Operations
    Return on Investment    		MinimumReturnMinimumAcceptable Income from Operations
    Residual Income
    $950,000$228,000(a)13%(b)(c)
    $460,000(d)(e)(f)$55,200$18,400
    $340,000(g)14%(h)$37,400(i)
    $260,000$52,000(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.$   

Check My Work

Answer & Explanation Solved by verified expert
3.8 Ratings (707 Votes)

a 24%
b $                     123,500
c $                     104,500
d $                       73,600
e 16%
f 12%
g $                       47,600
h 11%
i $                       10,200
j 20%
k $                       31,200
l $                       20,800

--Working

Invested Assets Income from Operations Return on Investments Minimum Return Minimum Acceptable Income from Operations Residual Income
$                         950,000 $                      228,000 24% 13% $              123,500 $             104,500
$                         460,000 $                        73,600 16% 12% $                55,200 $               18,400
$                         340,000 $                        47,600 14% 11% $                37,400 $               10,200
$                         260,000 $                        52,000 20% 12% $                31,200 $               20,800

--

Invested Assets Income from Operations Return on Investments Minimum Return Minimum Acceptable Income from Operations Residual Income
950000 228000 =228000/950000 0.13 =950000*13% =228000-123500
460000 =55200+18400 =73600/460000 =55200/460000 55200 18400
340000 =340000*14% 0.14 =37400/340000 37400 =47600-37400
260000 52000 =52000/260000 0.12 =260000*12% =52000-31200

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

calculate the formula mass of each compound given below. keep at least one decimal place in...

Physics
1.2K views

Even, in 1921, the Dodge Brothers built a boat named the SS Delphine and it had...

Advance Math
1.2K views

If G={e, a, b, c, ...}. The set Inn (G)={phi e, phi a, phi b, phi...

Biology
1.2K views

The experiment done by showed that DNA replication is O Hershey and Chase conservative O...

Physics
1.2K views

From a circular disc of radius R and mass M a R small disc of...

Calculus
1.2K views

Find the first derivative of f x 6x e cot x GLO

Algebra
1.2K views

Which of the following real numbers are constructible:(a) ??5 + ??7.(b) 1/7(4+??3).

Accounting
1.2K views

Problem 17-51 (LO. 4, 7) determined 2017 taxable income is $127,000. This taxable income inclucies...

Accounting
1.2K views

Stock Z has a Beta of 1.54. The Market Risk Premium is estimated to be...

Accounting
1.2K views

Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and...

Accounting
1.2K views

Learning Case #7 Chapter 7 tc The following transactions happened for a retailer in January...

Finance
1.2K views

Walsh Company is considering three independent projects, each of which requires a $3 million investment....