Assume that divisional income from operations amounts to $220,000, and top management has established 13% as the minimum acceptable return on divisional assets totaling $1,077,000. The residual income for the division is
Q: The following is divisional information for Kingfisher Enterprises: East Division West Division…
A: Solution: East Division: Average assets = (1500000 + 1200000) / 2 = 1,350,000 Residual income =…
Q: Far Sight is a division of a major corporation. The following data are for the latest year of…
A: a. Return On Investment = Net Operating IncomeAverage Operating Assets =$1,738,080$6,000,000=28.97%
Q: The Commercial Division of Galena Company has operating income of $218,370 and assets of $454,000.…
A: Residual Income is the income that is to be received after completion of work. This is the leftover…
Q: he vice president of operations of Pavone Company is evaluating the performance of wo divisions…
A: The income statement is prepared to find the net income or loss incurred during the period.
Q: Compute the rate of return on investment for each division. b. Which division is the most…
A: Formula: Rate of return for Retail division = ( Income from operations / Invested Assets ) x 10
Q: The following data relate to the Western Division of Palmerston Ltd for the current year. Sales…
A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Mr. Bailey asks that you prepare Divisional Income Statements showing what 20Y1 results would have…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales…
A: Return on Investment = (Operating Income / Investment In assets) *100
Q: The vice president of operations of Pavone Company is evaluating the performance of two divisions…
A: Solution:- Preparation of the condensed divisional income statements for the year ended December…
Q: Holo Company reported the following financial numbers for one of its divisions for the year; average…
A: Working Note: The formula for Residual income = Operating Income - (Minimum required rate of…
Q: If the average operating assets are P1,000,000, return on investment for the AB Division is…
A: Return on investment is a financial barometer used to measure the efficiency of the operations of…
Q: If operating income for a division is $5,000, invested assets are $25,000, and sales are $30,000,…
A: Profit Margin = Operating Income/ Sales
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: Return on investment (ROI) is a performance statistic used to evaluate the efficiency or…
Q: The following data are available for Segment X of XYZ Company: Net income of the segment $50,000…
A: Income or Financial performance: Using financial performance as a subjective indicator, we can…
Q: The sales, operating income, and invested assets for each division of Garner Company are as follows:…
A: Ratios are helpful in decision making, It is also helpful to compare two or more financial…
Q: The sales, income from operations, and invested assets for each division of Jackson Corporation are…
A: The ratio analysis helps to analyze the financial statements of the business on the basis of various…
Q: The operating income and the amount of invested assets in each division of Conley Industries are as…
A: Residulal income = Operating income - Desired income where, Desired income = Operating assets x…
Q: Far Sight is a division of a major corporation. The following data are for the latest year of…
A: Return on investment represents the profit earned on an investment made. It is calculated by…
Q: The operations of Smits Corporation are divided into the Child Division and the Jackson Division.…
A: The Operating income if the Jackson Division was dropped can be calculated by comparing the changes…
Q: The sales, income from operations, and invested assets for each division of Grosbeak Company are as…
A: Profit Margin = Income from Operations / Sales Investment Turnover = Sales / Invested Assets Rate of…
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: ROI is the return on investment. It basically means the amount earned by investing in some asset or…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2020:…
A: Here in this question, we are required to calculate the residual value. Residual value is a excess…
Q: Torres Company accumulates the following summary data for the year ending December 31, 2020, for its…
A: Responsibility Accounting: The management of responsibility centers by the means of pre-determined…
Q: residual income for the division
A: Residual income = Income from operations - (Assets * Minimum acceptable return on assets)
Q: (9) Mason Division had $1,176,000 in invested assets, sales of $1,252,000, income from operations…
A: Investment-Turnover Ratio shows efficiency of entity in deployment their funds to generate sales and…
Q: Sunland Corporation recently announced a bonus plan to reward the manager of its most profitable…
A: The question is based on the concept of Cost Accounting.
Q: Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each…
A: Please find the answers to the above questions below:
Q: Selected data from Chering Division's accounting records revealed the following: Sales $…
A: Return on sales = Operating profit / Sales
Q: The Consumer Division of Galena Company has income from operations of $50,430 and assets of…
A: Residual income means income from operations after meeting the target of minimum acceptable return…
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: Return on investment represents the return the company gets in return of the money invested.
Q: Based on the data in problem 24- 4 above, assume that management has established a 10% minimum…
A: Residual income = Actual net operating income - Minimum required rate of return We know that the…
Q: Consider the following data from two divisions of a company, P and Q: Divisional P Q Sales $…
A: Working: Calculation of Division P's residual income (RI): Residual income = Net operating income -…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Solution: Return on sales = net income / sales = 2000000/ 50000000 = 4%
Q: Dartford Company reported the following financial data for one of its divisions for the year;…
A: The residual income is calculated by subtracting the target income from the net income of the…
Q: The operating income and the amount of invested assets in each division of Conley Industries are as…
A: Return on investment is a financial metric that is widely used to measure the profitability of…
Q: Residual Income The operating income and the amount of invested assets in each division of Otte…
A: Residual income: Residual income is the excess of income over the minimum acceptable return on…
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: SOLUTION RESIDUAL INCOME FOR DIVISION = NET INCOME - AVERAGE INVESTED CAPITAL * COST OF CAPITAL .
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: In order to determine the margin, the net operating income is required to be divided by the net…
Q: Far Sight is a division of a major corporation. The following data are for the latest year of…
A: A. The return on investment is usually expressed as a percentage. ... You may calculate the return…
Q: Scottso Division has the following results for the year: * $1,080,000 Revenues Variable expenses…
A: Net income = $1,080,000 - $440,000 - $400,000 = $240,000
Q: Selected sales and operating data for three divisions of different structural engineering firms are…
A: Formulas: Margin = Net operating income / Annual sales * 100 Turnover = Net sales / Average total…
Q: NUBD Division reported a residual income of P200,000 for the year just ended. The division had…
A: Correct answer is 10%
Q: The following are selected data for the division for the consumer products of ABC Corp for 2019:…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Carter Company reported the following financial numbers for one of its divisions for the year;…
A: Residual income = Operating income - (Average invested assets*Minimum required rate of return)…
Q: NUBD Company has two divisions, X and Y. Information for each division is as follows: Net earnings…
A: In order to determine the Economic Value Added (EVA), the capital invested is required to be…
Q: Blaser Division had $1,040,000 in invested assets, sales of $1,271,000, income from operations of…
A: Rate of return on investment = Net Income / Investment in assets
(17) Assume that divisional income from operations amounts to $220,000, and top management has established 13% as the minimum acceptable return on divisional assets totaling $1,077,000. The residual income for the division is?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 2. The Commercial Division of Galena Company has operating income of $218,370 and assets of $454,000. The minimum acceptable return on assets is 13%. What is the residual income for the division? $_____If the average operating assets are P1,000,000, return on investment for the AB Division is (percent)Magnolia Company's Division A has income from operations of $73,300 and assets of $353,500. The minimum acceptable return on assets is 10%. What is the residual income for the division?
- Mitsu Division has the following results for the year: Revenues $1,080,000Variable expenses 440,000Fixed expenses 400,000Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. What is the residual income for Scottso?The sales, income from operations, and invested assets for each division of Wren Company are as follows: Sales Income from Operations Invested Assets Division C $5,000,000 $630,000 $4,000,000 Division D 6,800,000 760,000 3,900,000 Division E 3,750,000 750,000 7,500,000 Management has established a minimum rate of return for invested assets of 10%. What is the Residual Income for Division C? What is the Residual Income for Division D? What is the Residual Income for Division E? Based on Residual Income, Division __?__ is the most profitable.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
- (18) Assume that Division Blue has achieved a yearly income from operations of $159,000 using $1,028,000 of invested assets. If management has set a minimum acceptable return of 9%, the residual income isDurand Division has the following results for the year: Revenues $470,000Net income 130,000Total divisional assets are $625,000. The company's minimum required rate of return is 12 percent. Residual income for Durand is?B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin Return on investment Residual income 2.20 a ✓ % 4.2 ✓ % C. Which of the following statements is correct? Uncontrollable costs are included in the income statement because a. these costs ultimately affect each division. b. these costs are the responsibility of each division manager. c. these costs are non-recurring. d. these costs are head office's responsibility.
- a. Compute the rate of return on investment for each division. b. Which division is the most profitable per dollar invested? Assume that management has established a 10% minimum acceptable rate of return for invested assets. c. Determine the residual income for each division. d. Which division has the most residual income?The Commercial Division of Galena Company has income from operations of $63,010 and assets of $179,000. The minimum acceptable return on assets is 11%. What is the residual income for the division?$fill in the blank 1Part I (1) What is residual income and how is it calculated? (2) Please use the information below to calculate the residual income for Divisions A and B, assuming that the company’s minimum rate of return is 15 percent. Income Invested Sales from Operations Assets Division A $500,000 $ 90,000 $400,000 Division B 800,000 144,000 600,000