Estes Company has assembled the following data for its divisions for the past year: Average operating...
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Estes Company has assembled the following data for its divisions for the past year: Average operating assets. Sales.... Net operating income. Turnover... Margin. Minimum required rate of return...... Residual income.. 0 32% 0 16% 0 20% ***** Division B's return on investment is: O $6,000 ******* Division A Division B $500,000 ? ? $100,000 1.25 ? 14% ? $520,000 $20,300 4 3.9% ? $6,000 Estes Company has assembled the following data for its divisions for the past year: Average operating assets. Sales.... Net operating income. Turnover... Margin. Minimum required rate of return...... Residual income.. 0 32% 0 16% 0 20% ***** Division B's return on investment is: O $6,000 ******* Division A Division B $500,000 ? ? $100,000 1.25 ? 14% ? $520,000 $20,300 4 3.9% ? $6,000
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Assets turnover ratio Net sales Average assets So 52... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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