Question
A food manufacturer reports the following for two of its divisions for a recent year. ($millions) Beverage Division Cheese Division Invested assets, beginning $ 3,350
A food manufacturer reports the following for two of its divisions for a recent year.
| ($millions) | Beverage Division | Cheese Division | |||||
| Invested assets, beginning | $ | 3,350 | $ | 6,400 | |||
| Invested assets, ending | 3,250 | 6,300 | |||||
| Sales | 2,701 | 3,945 | |||||
| Operating income | 369 | 760 | |||||
Assume that each of the companys divisions has a required rate of return of 10.00%. Compute residual income for each division. (Enter your answers in millions.)
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
