Question
Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2020: Department Sales Cost of Goods Sold
Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2020:
Department Sales Cost of Goods Sold Operating Expenses Current Investment
1 $ 188,000 $ 141,000 $12,455 $ 164,500
2 $ 84,600 $ 32,900 $ 22,090 $ 197,400
3 $ 1,410,000 $ 1,102,620 $ 172,960 $ 1,034,000
4 $ 1,175,000 $ 705,000 $ 259,440 $ 1,316,000
Calculate return on investment and rankdepartment performances.(Round answers to 0 decimal places, e.g. 10%.)
Department ROI Rank
1 ? % ?
2 ? % ?
3 ? % ?
4 ? % ?
Calculate residual income and rankdepartment performances. Assume that the company requires a minimum return on the current investment of10%.
Department RI Rank
1 $ ? ?
2 $ ? ?
3 $ ? ?
4 $ ? ?
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