Pollack Industries provides the following information: Desired rate of return Cost of assets 8% Annual profit before depreciation expense Annual depreciation expense $720,000 $330,000 $35,000 In determining ROI and residual income, the company uses the book value of assets at the beginning of a year. 1. Compute ROI for the third year: % 2. Compute residual income for the sixth year: $

Pine Corp. has revenues of $520,000 resulting in an operating income of $66,560. Invested assets total $611,000. Residual income is $24,000. Calculate the new residual income if sales increase by 10% and the profit margin and invested assets remain the same. (Do not round your intermediate calculations.) A $0 B $30,656 C $42,560 D $10,496

The following are selected data for the division for the consumer products of ABC Corp for 2020: Sales P 10,000,000 Average invested capital 4,000,000 Net Income 400,000 Cost of Capital 8% What is the return on sales for the division? 1. 4% 2. 8% 3. 10% 4. 20% O 1 O 2 O 3 O 4

Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table of returns on investment and residual incomes: Invested Assets Income from Operations Return on Investment Minimum Return Minimum Acceptable Income from Operations Residual Income $890,000   $231,400   (a)   15%   (b)           (c)   $460,000   (d)   (e)   (f)   $50,600           $23,000   $310,000   (g)   14%   (h)   $31,000           (i)   $230,000   $48,300   (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.