The following data pertain to Dakota Division's most recent year of operations. Income $ 17,500,000 200,000,000 65,000,000 Sales revenue Average invested capital Assume that the company's minimum desired rate of return on invested capital is 12 percent. Required: Compute Dakota Division's residual income for the year. Residual income

The following data pertain to Dakota Division's most recent year of operations. Income $ 17,500,000 200,000,000 65,000,000 Sales revenue Average invested capital Assume that the company's minimum desired rate of return on invested capital is 12 percent. Required: Compute Dakota Division's residual income for the year. Residual income

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.11E

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The following data pertain to Dakota Division's most recent year of operations. Income $ 16,000,000 185,000,000 62,000,000 Sales revenue Average invested capital Assume that the company's minimum desired rate of return on invested capital is 14 percent. Required: Compute Dakota Division's residual income for the year. ces Residual income Na < Prev 4 of 7
The following results are available for Division X and Y:Division X Division YProfit before interest and tax P185 000 P172, 000Capital employed P1, 540, 000 P1, 650, 000The cost of capital is 10%.Calculate and comment on the performance of the departments based on:a. Return on capital employed (4 marks)b. Residual incom
The following data pertain to Dakota Division's most recent year of operations. $ 4,800,000 54,000,000 17,500,000 Income Sales revenue Average invested capital Required: Compute Dakota Division's sales margin, capital turnover, and return on investment for the year. (Round your answers places (i.e.., .1234 should be entered as 12.34).) Sales margin Capital turnover Return on investment Nex > 3 of 7 < Prev
The following data pertain to Dakota Division's most recent year of operations. Income $ 4,350,000 50,000,000 17,500,000 Sales revenue Average invested capital Required: Compute Dakota Division's sales margin, capital turnover, and return on investment for the year. (Round your answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) Sales margin % Capital turnover Return on investment % < Prev 3 of 7 Next
The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income
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Jordan Company has two divisions, which reported the following results for the most recent year. Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000 ₱ 03,000,000 ROI 15% 20% Imputed interest rate = 10% What is the residual income of Division II? Group of answer choices ₱ 0 ₱ 300,000 ₱ 900,000 ₱ 294,000
Assume a company had net operating income of $300,000, sales of $1,500,000, residual income of $130,000, and a minimum required rate of return on average operating assets of 14.00%. The company's average operating assets are closest to: Multiple Choice $1,214,286. $1,035,715. $1,157144. $1,200,000. 田

required: The residual income for the AB Division last year was The return on investment last year for the AB Company was (percent)
Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc.Balance Sheet BeginningBalance EndingBalance Assets Cash $ 138,000 $ 134,000 Accounts receivable 342,000 483,000 Inventory 580,000 473,000 Plant and equipment, net 810,000 820,000 Investment in Buisson, S.A. 400,000 435,000 Land (undeveloped) 248,000 250,000 Total assets $ 2,518,000 $ 2,595,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 340,000 Long-term debt 1,046,000 1,046,000 Stockholders' equity 1,097,000 1,209,000 Total liabilities and stockholders' equity $ 2,518,000 $ 2,595,000 Joel de Paris, Inc.Income Statement Sales $ 5,103,000 Operating expenses 4,235,490 Net operating income 867,510 Interest and taxes:…
Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).
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