Given the following data: 1. Return on investment ROI).. 2. Sales............. 3. Average operating assets............ 4. Minimum required rate of return...... 5. Margin...... "' D Re .15% P240,000 .P120,000 12% .7.50%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Given the following data:
Exercise 5-2
1. Return on investment ROI).....
2. Sales............
3. Average operating assets...........
4. Minimum required rate of return.......
5. Margin...........
REQUIRED:
1. Compute for residual income.
Net
:
S
- P
Reg
=N
..15% =
P240,000
..P120,000
.12%
..7.50%
Transcribed Image Text:Given the following data: Exercise 5-2 1. Return on investment ROI)..... 2. Sales............ 3. Average operating assets........... 4. Minimum required rate of return....... 5. Margin........... REQUIRED: 1. Compute for residual income. Net : S - P Reg =N ..15% = P240,000 ..P120,000 .12% ..7.50%
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