Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental...
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Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2020: Department Sales Cost of Goods Sold Operating Expenses Current Investment $ 164,000 $ 123,000 $ 9,430 $ 143,500 1 2 73,800 28,700 19,270 172,200 1,230,000 961,860 141,860 902,000 4 1,025,000 615,000 214,840 1,148,000 Calculate return on investment and rank department performances. (Round answers to 0 decimal places, e.g. 10%.) Department ROI Rank 1 2 3 4 eTextbook and Media Calculate residual income and rank department performances. Assume that the company requires a minimum return on the current investment of 10%. Department RI Rank 1 2 3 $ > > > > %24 %24 3. Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2020: Department Sales Cost of Goods Sold Operating Expenses Current Investment $ 164,000 $ 123,000 $ 9,430 $ 143,500 1 2 73,800 28,700 19,270 172,200 1,230,000 961,860 141,860 902,000 4 1,025,000 615,000 214,840 1,148,000 Calculate return on investment and rank department performances. (Round answers to 0 decimal places, e.g. 10%.) Department ROI Rank 1 2 3 4 eTextbook and Media Calculate residual income and rank department performances. Assume that the company requires a minimum return on the current investment of 10%. Department RI Rank 1 2 3 $ > > > > %24 %24 3.
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Residual Income is the profit earned above and beyond the re... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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