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Consider the following information for the Executive Division of Buy Electronics: December 31 2018 2017 Total assets $11,800,000 $11,000,000 Noninterest-bearing current liabilities 500,000 520,000 Net
Consider the following information for the Executive Division of Buy Electronics:
| December 31 | ||||
| 2018 | 2017 | |||
| Total assets | $11,800,000 | $11,000,000 | ||
| Noninterest-bearing current liabilities | 500,000 | 520,000 | ||
| Net income | 700,000 | 800,000 | ||
| Interest expense | 210,000 | 300,000 | ||
| Income tax rate | 35% | 35% | ||
| Cost of capital | 7% | 8% | ||
| Required rate of return | 9% | 11% | ||
How much is residual income for 2018?
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Custom Edition For University Of Central Florida From Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz
3rd Edition
1269451839, 978-1269451833
