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Miller Medical Services provided the following information for its operations in the Hospital Bed Division. Revenues $2,000,000 Accounts receivable $500,000 Required rate of return 11%
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Miller Medical Services provided the following information for its operations in the Hospital Bed Division.
Revenues $2,000,000 Accounts receivable $500,000 Required rate of return 11% Net operating income $800,000 Total assets $6,500,000
What is Hospital Bed's residual income?
$30,000
$85,000
($195,000)
$1,285,000
Miller Medical Services provided the following information for its operations in the Hospital Bed Division.
| Revenues | $2,000,000 |
| Accounts receivable | $500,000 |
| Required rate of return | 11% |
| Net operating income | $800,000 |
| Total assets | $6,500,000 |
What is Hospital Bed's residual income?
| $30,000 | ||
| $85,000 | ||
| ($195,000) | ||
| $1,285,000 |
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