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Return on investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations
Return on investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations $89,300 168,000 Invested Assets $470,000 Retail Division Commercial Division Internet Division 800,000 740,000 111,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division Commercial Division Internet Division b. Which division is the most profitable per dollar invested? Commercial Division Residual Income The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $120,600 $670,000 Commercial Division 166,000 830,000 Internet Division 193,200 840,000 Assume that management has established a 8% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division $120,600 Commercial Division $166,000 Internet Division $193,200 Income from operations Minimum acceptable income from operations as a percent of invested assets Residual income b. Which division has the most residual income
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