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    Solving for unknowns

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    J
    Income: $280,000
    Revenue: $_______
    Invested capital: $______
    Return on sales: 7%
    Capital turnover: 4
    Rate on return on invested capital: _____%
    Cost of capital: 16%
    Economic profit: $_____

    K
    Income: $_____
    Revenue: $_______
    Invested capital: $3,000,000
    Return on sales: 4%
    Capital turnover: _____
    Rate on return on invested capital: 20%
    Cost of capital: 12%
    Economic profit: $_____

    L
    Income: $_____
    Revenue: $_______
    Invested capital: $16,000,000
    Return on sales: ____%
    Capital turnover: 3
    Rate on return on invested capital: 15%
    Cost of capital: ____%
    Economic profit: $320,000

    1. Fill in all blanks.
    2. Which division is the best performer? Explain.

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    https://brainmass.com/business/accounting/solving-unknowns-financial-accounting-345966

    Solution Preview

    Please see the attachment

    J
    Income: $280,000
    Revenue: $_______

    Return on Sales = Net Income/Revenue
    Revenue = 280,000/7% = 4,000,000
    Invested capital: $______

    Capital turnover = Revenue/Invested capital
    Invested capital = 4,000,000/4 = 1,000,000

    Return on sales: 7%
    Capital turnover: 4
    Rate on return on invested capital: _____%

    Rate of return on invested capital = Net Income/Invested capital = 280,000/1,000,000 = 28%

    Cost of capital: 16%
    Economic profit: $_____

    Economic ...

    Solution Summary

    The solution explains how to solve for various financial accounting variables, including revenue, invested capital, return on sales, capital turnover.

    $2.19

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