Simple ROI and Residual Income Calculations. Consider the following data: 1.)   DIVISION             X Y Z   Invested Capital P2,000,000 (1)1,300,000 P1,250,000     Income (2) 100,000 P182,000 P   150,000     Revenue P4,000,000 P3,640,000 (3) 3,750,000     Income Percentage of Revenue 2.5% (4) 5% (5) 4%     Capital Turnover (6) 2 (7) 2.8 3     Rate of Return on Invested Capital (8) 5% 14% (9) 12%   Required: 1.  Which division is the best performer 2. Suppose each division is assessed an imputed interest rate of 20% on invested capital. Compute the residual income for each division.

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.

Vishnu

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