Nu Love Not surrom W. M. a 100 points Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products Forbes Division, which has 5 miliona manufactures a special testing device. Al te beginning of the current Forbes invested $6.12 million in automated equipment for test machine assembly. The division's expected income stament at the beginning of the year was as follows Sales revenue Operating costs $ 150 000 2100 000 7.660 000 Fored cash Depreciation New equipment Other Division operating profil 1550 000 1330 000 $ 3.410.000 A sales representative from LSI Machine Company approached Oscar in October, LSI as for $1.83 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fired costs by 5 percent. It would be depreciated for accounting purposes over the year it. Depreciation would be the $519.000 salvage value of the new machine. The new equipment meets Pis 12 percent cost of capital criterion. If Oscar purchases the new machine, It must be installed prior to the end of the year for purposes though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year The old machine, which has no salvage value, must be disposed of to make room for the new machine Pit has a performance evaluation and bonus plan based on residual income. Pe uses a cost of capital of 12 percent in computing residual income income includes anys on disposal of equipment Investment compte based on the end-of-year balance of assets, netbook value ignore taxes Required: a. What is Forbes Division's residual income it Oscar does not acquire the new machine? (Negative amount should be indicated by a mis sister your answer in thousands of dollars. Round your finale nearest whole dollar) h What is the vicinitie Type here to search 7 II E 22 me me, which we value, must be disposed of to make room for the new machine Pit has a performance evaluation and bonus plan based on residual income, Presa cost of capital of 12 percent in computing residual income incorre includes any losses on disposal of equipment Investment is com based on the end-ofyear balance of assets, netbook value. Ignore taxes Required: What is Forbes Division's residual income it Oscar does not acquire the new machine? plegative sunt should be indicated by a mission Enter your answer in thousands of dollars. Hound your inte nearest whole dollar b. What is Forbes Division's residual income this year I Oscar acquires the new machine? Negative amount should be inded by a minus sign inter your answer in thousands of dollars. Round your final nearest whole dobar c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? Negative amount should be indicated by a minus sign Enter your answer in thousands dollars. Round your final answers to nearest whole dollar References eBook & Resources Leaming tinctive 16.04 interpret Added E Worksheet Type here to search Dic 2 Medium o 0 AI ING 72 E M Nu Love Not surrom W. M. a 100 points Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products Forbes Division, which has 5 miliona manufactures a special testing device. Al te beginning of the current Forbes invested $6.12 million in automated equipment for test machine assembly. The division's expected income stament at the beginning of the year was as follows Sales revenue Operating costs $ 150 000 2100 000 7.660 000 Fored cash Depreciation New equipment Other Division operating profil 1550 000 1330 000 $ 3.410.000 A sales representative from LSI Machine Company approached Oscar in October, LSI as for $1.83 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fired costs by 5 percent. It would be depreciated for accounting purposes over the year it. Depreciation would be the $519.000 salvage value of the new machine. The new equipment meets Pis 12 percent cost of capital criterion. If Oscar purchases the new machine, It must be installed prior to the end of the year for purposes though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year The old machine, which has no salvage value, must be disposed of to make room for the new machine Pit has a performance evaluation and bonus plan based on residual income. Pe uses a cost of capital of 12 percent in computing residual income income includes anys on disposal of equipment Investment compte based on the end-of-year balance of assets, netbook value ignore taxes Required: a. What is Forbes Division's residual income it Oscar does not acquire the new machine? (Negative amount should be indicated by a mis sister your answer in thousands of dollars. Round your finale nearest whole dollar) h What is the vicinitie Type here to search 7 II E 22 me me, which we value, must be disposed of to make room for the new machine Pit has a performance evaluation and bonus plan based on residual income, Presa cost of capital of 12 percent in computing residual income incorre includes any losses on disposal of equipment Investment is com based on the end-ofyear balance of assets, netbook value. Ignore taxes Required: What is Forbes Division's residual income it Oscar does not acquire the new machine? plegative sunt should be indicated by a mission Enter your answer in thousands of dollars. Hound your inte nearest whole dollar b. What is Forbes Division's residual income this year I Oscar acquires the new machine? Negative amount should be inded by a minus sign inter your answer in thousands of dollars. Round your final nearest whole dobar c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? Negative amount should be indicated by a minus sign Enter your answer in thousands dollars. Round your final answers to nearest whole dollar References eBook & Resources Leaming tinctive 16.04 interpret Added E Worksheet Type here to search Dic 2 Medium o 0 AI ING 72 E M