Exercise 10-19

Compute the missing information labeled aq. (Round percentages and ratios to 2 decimal places, e.g. 5.12 or 5.12% and all other answers to 0 decimnal places, e.g. 5,125.)

Segment A	Segment B	Segment C	Segment D	Segment E
Sales	$1,010,000	$1,500,000	(i) $	$402,000	$316,000
Operating income	103,200	(f)	420,000	60,300	(o)
Tax rate	30	%	25	%	20	%	(l)	%	20	%
Total assets	517,000	(g)	1,400,000	502,500	124,180
Current liabilities	47,100	45,300	(j)	40,710	10,150
Corporate required return	15%	18	%	19	%	(m)	%	20	%
Weighted-average cost of capital	12%	14	%	15	%	10	%	18	%
Margin	(a)	%	5	%	(k)	%	15	%	2	%
Asset turnover	(b)	2	1.18	(n)	2.54
Return on investment	(c)	%	(h)	%	30	%	12	%	(p)	%
Residual income	(d)	-60,000	154,000	0	-18,516
Economic value added	(e) $	-42,408	$147,700	$-4,572	(q) $

Segment ASegment BSegment CSegment DSegment E Sales $1,010,000 $1,500,000 (i) $

$402,000 $316,000 Operating income 103,200 (f)

420,000 60,300 (o)

Tax rate 30 % 25 % 20 % (l)

% 20 % Total assets 517,000 (g)

1,400,000 502,500 124,180 Current liabilities 47,100 45,300 (j)

40,710 10,150 Corporate required return 15% 18 % 19 % (m)

% 20 % Weighted-average cost of capital 12% 14 % 15 % 10 % 18 % Margin (a)

% 5 % (k)

% 15 % 2 % Asset turnover (b)

2 1.18 (n)

2.54 Return on investment (c)

% (h)

% 30 % 12 % (p)

% Residual income (d)

-60,000 154,000 0 -18,516 Economic value added(e) $

-42,408$147,700$-4,572(q) $