Question
The following is divisional information for Randolph Enterprises: East Division West Division Operating income $250,000 $200,000 Net sales 2,225,000 1,575,000 Total assets at Jan. 1
The following is divisional information for Randolph Enterprises:
East Division West Division
Operating income $250,000 $200,000
Net sales 2,225,000 1,575,000
Total assets at Jan. 1 1,500,000 840,000
Total assets at Dec .31 1,200,000 1,000,000
The target rate of return is 12% for the East Division and is 10% for the West Division. Compute the return on investment and residual income for each division. (Round to one decimal place.)
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The Security Risk Handbook Assess Survey Audit
Authors: Charles Swanson
1st Edition
1032030356, 978-1032030357
