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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 Osaka $ 10,400,000 $ 520,000 $ 2,600,000 Yokohama $ 34,000,000 $ 2,380,000 $ 17,000,000 Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 12%.

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 Osaka $ 10,400,000 $ 520,000 $ 2,600,000 Yokohama $ 34,000,000 $ 2,380,000 $ 17,000,000 Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 12%.

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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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 Osaka $ 10,400,000 $ 520,000 $ 2,600,000 Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 12%. Complete this question by entering your answers in the tabs below. ROI Yokohama $ 34,000,000 $ 2,380,000 $ 17,000,000 For each division, compute the return on investment (ROI). Osaka Yokohama < Required 1 Required 2 >
Transcribed Image Text: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 Osaka $ 10,400,000 $ 520,000 $ 2,600,000 Required: 1. For each division, compute the return on investment (ROI). 2. Compute the residual income for each division assuming the company's minimum required rate of return is 12%. Complete this question by entering your answers in the tabs below. ROI Yokohama $ 34,000,000 $ 2,380,000 $ 17,000,000 For each division, compute the return on investment (ROI). Osaka Yokohama < Required 1 Required 2 >
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