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Exercise 22.12 Resiquar income LV AT Kraft Foods Group reports the following for two of its divisions for a recent year. All numbers are in
Exercise 22.12 Resiquar income LV AT Kraft Foods Group reports the following for two of its divisions for a recent year. All numbers are in millions of dollars. Beverage ($millions) Division Invested assets, beginning $ 3,120 Invested assets, ending 2,790 Sales 3,001 Operating income 409 Cheese Division $ 5,105 4,760 4,285 654 eBook Print ferences Assume that each of the company's divisions has a required rate of return of 8%. Compute residual income for each division (Enter your answer in millions. Round "Targeted return" to 2 decimal places. Round your answers to nearest whole dollar.) Beverage Cheese 0 ($ millions) Average assets Targeted return Target income Residual Income Operating income Less: Target income Residual income Beverage Cheese
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