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?
Deuk Seon have the following investment centers. Several items are missing from the following table of rate of
|
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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