Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Division Yokohama Osaka $ 9,600,000 $ 26,000,000 $ 2,340,000 $ 672,000 $ 3,200,000 $ 13,000,000 Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division.
Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Sales Net operating income Average operating assets Division Yokohama Osaka $ 9,600,000 $ 26,000,000 $ 2,340,000 $ 672,000 $ 3,200,000 $ 13,000,000 Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with 1 & 2 thank you!
![Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Sales
Net operating income
Average operating assets
Required 1 Required 2
Division
Required:
1. For each division, compute the return on investment (ROI).
2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 16%. Compute the residual income for each division.
Osaka
$ 9,600,000
$ 672,000
$ 3,200,000
Complete this question by entering your answers in the tabs below.
Residual income
Osaka
Yokohama
$ 26,000,000
$ 2,340,000
$ 13,000,000
Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 16%. Compute the residual income for each division.
Yokohama](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d6fa1e9-36c0-4861-8dbf-8c72fa6219f2%2Fbae0263c-016c-401f-bbe7-b981fad31d3f%2Fvf1woya_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Sales
Net operating income
Average operating assets
Required 1 Required 2
Division
Required:
1. For each division, compute the return on investment (ROI).
2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 16%. Compute the residual income for each division.
Osaka
$ 9,600,000
$ 672,000
$ 3,200,000
Complete this question by entering your answers in the tabs below.
Residual income
Osaka
Yokohama
$ 26,000,000
$ 2,340,000
$ 13,000,000
Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 16%. Compute the residual income for each division.
Yokohama
![Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Sales
Net operating income
Average operating assets
Required 1 Required 2
Required:
1. For each division, compute the return on investment (ROI).
2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 16%. Compute the residual income for each division.
Complete this question by entering your answers in the tabs below.
ROI
Osaka
$ 9,600,000
$ 672,000
$ 3,200,000
Osaka
Division
For each division, compute the return on investment (ROI).
%
Yokohama
$ 26,000,000
$ 2,340,000
$ 13,000,000
Yokohama
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d6fa1e9-36c0-4861-8dbf-8c72fa6219f2%2Fbae0263c-016c-401f-bbe7-b981fad31d3f%2Fgtjfaxh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 11-6 (Algo) Contrasting Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Sales
Net operating income
Average operating assets
Required 1 Required 2
Required:
1. For each division, compute the return on investment (ROI).
2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 16%. Compute the residual income for each division.
Complete this question by entering your answers in the tabs below.
ROI
Osaka
$ 9,600,000
$ 672,000
$ 3,200,000
Osaka
Division
For each division, compute the return on investment (ROI).
%
Yokohama
$ 26,000,000
$ 2,340,000
$ 13,000,000
Yokohama
%
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