Dacker Products is a division of a major corporation. The following data are for the most recent year of operations:SalesNet operating incomeAverage operating assets$ 36,880,000$ 3,008,960$ 8,400,000The company's minimum required rate of returnThe division's residual income is closest to:Multiple Choice$4,268,960$(3,227,840)○ $3,008,960○ $1,748,960$ 15%

The objective of this question is to calculate the residual income of Dacker Products, a division of…

Answered: Dacker Products is a division of a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,470,000 $ 974,000 $ 4,861,000 Operating Income 173,200 172,300 180,500 Investment in assets 428,200 567,500 2,553,200 The return on sales (ROS) for Division Y is: Multiple Choice 3.7%. 30.4%. 17.7%. 11.8%.
Far Sight is a division of a major corporation. The following data are for the latest year of operations: Required: a. What is the division's return on investment (ROI)?b. What is the division's residual income? Sales 24,480,000 Net operating income 1.738.000 average operating assets 6,000 rate of return 16%
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Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ 300,000 $ 200,000 $ 500,000 Variable expenses 120,000 140,000 260,000 Contribution margin 180,000 60,000 240,000 Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ 80,000 $ (20,000) 60,000 Common fixed expenses 50,000 Net operating income $ 10,000 The dollar sales required for the company to break even is closest to:
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On 12/31/2020, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 20205. How much in dividends did Heaton pay during 2020? Group of answer choices A. $47,381 B. $49,875 C. $52,500 D. $55,125 E. $57,881
Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division Net (after-tax) income $653,400 $330,750 Total capital employed 4,560,000 3,705,000 In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 7%. Required: Enter negative values as negative numbers. 1. Calculate the residual income for the Adams Division. 2. Calculate the residual income for the Jefferson Division.
What is the investment turnover?
Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) A B C Sales $5,267,000 $1,630,000 Net Operaring Income $737,380 $260,800 Average operating assets $2,290,000 $2,570,000 Margin 6% Turnover 1.60 Return on Investment (ROI) 8%
Eacher Wares is a division of a major corporation. The following data are for the latest year of operations: Sales Net operating income Average operating assets The company's minimum required rate of return $14,720,000 $1,000,960 $4,000,000 14% Required: a. What is the division's margin? b. What is the division's turnover? c. What is the division's return on investment (ROI)? d. What is the division's residual income?
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charge Sales $936,000 Cost of goods sold 421,200

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