Residual Income The Consumer Division of Galena Company has income from operations of $235,250 and assets of $464,000. The minimum acceptable return on assets is 13%. What is the residual income for the division?

Buckley Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. BUCKLEY COMPANY Income Statements for Year 2 Segment A   B   C Sales $ 330,000     $ 480,000     $ 500,000   Cost of goods sold   (242,000 )     (184,000 )     (190,000 ) Sales commissions   (30,000 )     (44,000 )     (44,000 ) Contribution margin   58,000       252,000       266,000   General fixed operating expenses (allocation of president’s salary)   (92,000 )     (92,000 )     (92,000 ) Advertising expense (specific to individual divisions)   (6,000 )     (20,000 )     0   Net income (loss) $ (40,000 )   $ 140,000     $ 174,000     Required Prepare a schedule of relevant sales and costs for Segment A. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. Options for required A table are: Advertising…

The operating income and the amount of invested assets in each division of Conley Industries are as follows:   Operating income Invested Assets Retail Division $103,400   $470,000   Commercial Division 105,000   420,000   Internet Division 130,000   500,000   Assume that management has established a 10% minimum acceptable return for invested assets.   a.  Determine the residual income for each division.   Retail Division Commercial Division Internet Division Operating income $103,400    $105,000     $130,000    Minimum acceptable operating income as a percent of invested assets             Residual income $   $   $   b.  Which division has the most residual income?

Concord Company earned a controllable margin of $125000 on sales of $1607000. The division had average operating assets of $1293000. The company requires a return on investment of at least 7%. How much is residual income? O $34490 O $159490 O $90510 O $112490

Residual Income The Commercial Division of Galena Company has operating income of $264,070 and assets of $549,000. The minimum acceptable return on assets is 13%. What is the residual income for the division?

Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results:   Adams Division Jefferson Division Net (after-tax) income $653,400   $330,750   Total capital employed 4,560,000   3,705,000   In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 7%. Required: Enter negative values as negative numbers. 1.  Calculate the residual income for the Adams Division. 2.  Calculate the residual income for the Jefferson Division.

Residual Income The operating income and the amount of invested assets in each division of Conley Industries are as follows:   Operating Income Invested Assets Retail Division $9,600,000   $40,000,000   Commercial Division 12,100,000   55,000,000   Internet Division 6,480,000   36,000,000   Assume that management has established a 15% minimum acceptable return for invested assets.   a.  Determine the residual income for each division.   Retail Division Commercial Division Internet Division Operating income $9,600,000    $12,100,000     $6,480,000    Minimum acceptable operating income as a percent of invested assets fill in the blank 1   fill in the blank 2   fill in the blank 3   Residual income $fill in the blank 4   $fill in the blank 5   $fill in the blank 6   b.  Which division has the most residual income?

Residual Income The Commercial Division of Galena Company has income from operations of $143,640 and assets of $399,000. The minimum acceptable return on assets is 10%. What is the residual income for the division?$fill in the blank 1