Question 20

Required information [The following information applies to the questions displayed below.) A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Beverage Cheese Division Division Invested assets, beginning $2,696 $4,489 Invested assets, ending 2,610 4,417 Sales 2,698 3,942 Operating income 366 651 Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division (Ente your answers in millions.) (5 millions) Beverage Cheese Targeted rotum Target income Residual Income Beverage Cheese Residual income