chapter 22 question 16

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. DOK ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,675 2,599 2,687 355 Cheese Division $4,468 4,406 3,931 640 t Exercise 22-13 Residual income LO A1 ces Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division. (Enter your answers in millions.) (5 millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese [The following information applies to the questions displayed below.) A food manufacturer reports the following for two of its divisions for a recent year. s ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,675 2,599 2,687 355 Cheese Division $4,468 4,406 3,931 640 Book Ent Exercise 22-13 Residual income LO A1 nt Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each divis your answers in millions.) ces ($ millions) Beverage Cheese Targeted return Target income Residual Income Beverage Cheese Residual income