Question: Miller Medical Services provided the following information for its operations in the Hospital Bed Division. Revenues $2,000,000 Accounts receivable $500,000 Required rate of return 11%

  1. Miller Medical Services provided the following information for its operations in the Hospital Bed Division.

    Revenues $2,000,000
    Accounts receivable $500,000
    Required rate of return 11%
    Net operating income $800,000
    Total assets $6,500,000

    What is Hospital Bed's residual income?

    $30,000

    $85,000

    ($195,000)

    $1,285,000

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