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Estes Company has assembled the following data for its divisions for the past year: Average operating assets Sales.............. Net operating income Turnover Division A Division B $500,000 ? ? $520,000 $100,000 $20,300 1.25 4 ? 3.9% Minimum required rate of return 14% ? ? $6,000 Margin.... Residual income Division B's average operating assets is: $81,200 $2,080,000 $1,333,333 $130,000

Estes Company has assembled the following data for its divisions for the past year: Average operating assets Sales.............. Net operating income Turnover Division A Division B $500,000 ? ? $520,000 $100,000 $20,300 1.25 4 ? 3.9% Minimum required rate of return 14% ? ? $6,000 Margin.... Residual income Division B's average operating assets is: $81,200 $2,080,000 $1,333,333 $130,000

FINANCIAL ACCOUNTING
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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Estes Company has assembled the following data for its divisions for the past year: Average operating assets Sales.............. Net operating income Turnover Division A Division B $500,000 ? ? $520,000 $100,000 $20,300 1.25 4 ? 3.9% Minimum required rate of return 14% ? ? $6,000 Margin.... Residual income Division B's average operating assets is: $81,200 $2,080,000 $1,333,333 $130,000
Transcribed Image Text:Estes Company has assembled the following data for its divisions for the past year: Average operating assets Sales.............. Net operating income Turnover Division A Division B $500,000 ? ? $520,000 $100,000 $20,300 1.25 4 ? 3.9% Minimum required rate of return 14% ? ? $6,000 Margin.... Residual income Division B's average operating assets is: $81,200 $2,080,000 $1,333,333 $130,000
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