Question - Determining Missing Items in Rate of Return and Residual Income Computations
Data for Schmidt Company are presented in the following table of rates of return on investment and residual incomes:
|
Invested Assets
|
Income from Operations
|
Rate of Return on Investment
|
Minimum Rate of Return
|
Minimum Acceptable Income from Operations
|
Residual Income
|
|
$930,000
|
$213,900
|
(a)
|
13%
|
(b)
|
(c)
|
|
$540,000
|
(d)
|
(e)
|
(f)
|
$59,400
|
$27,000
|
|
$300,000
|
(g)
|
14%
|
(h)
|
$33,000
|
(i)
|
|
$230,000
|
$43,700
|
(j)
|
11%
|
(k)
|
(l)
|
Determine the missing values, identified by the letters above. For all amounts, round to the nearest whole number.