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Bookworks Publishing reported the following result for its textbook division. Sales $4,600,000. Operating Income $690,000. Total Assets $2,000,000. Current Liability is $920,000. Bookworks target rate
Bookworks Publishing reported the following result for its textbook division. Sales $4,600,000. Operating Income $690,000. Total Assets $2,000,000. Current Liability is $920,000. Bookworks target rate of return is 13% and the weighted average cost of capital is 11%. It's effective tax rate is $35,000. What is the book division's residual income? A. $220,000. B. $260,000. C. $430,000. D. $726,000
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
