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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
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 Division | Cheese Division | |||||
Invested assets, beginning | $ | 2,662 | $ | 4,455 | |||
Invested assets, ending | 2,593 | 4,400 | |||||
Sales | 2,681 | 3,925 | |||||
Operating income | 349 | 634 | |||||
Assume that each of the companys divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.)
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