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The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating income Invested Assets Retail Division $57,000
The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating income Invested Assets Retail Division $57,000 $300,000 Commercial Division 171,600 780,000 Internet Division 74,200 530,000 Assume that management has established a 8% minimum acceptable return for invested assets. a. Determine the residual income for each division. Retail Division Commercial Division Internet Division Operating income $57,000 $171,600 $74,200 Minimum acceptable operating income as a percent of invested assets Residual income $ $ $
The operating income and the amount of invested assets in each division of Conley Industries are as follows:
Operating income
Invested Assets
Retail Division
$57,000
$300,000
Commercial Division
171,600
780,000
Internet Division
74,200
530,000
Assume that management has established a 8% minimum acceptable return for invested assets.
a. Determine the residual income for each division.
Retail Division
Commercial Division
Internet Division
Operating income
$57,000
$171,600
$74,200
Minimum acceptable operating income as a percent of invested assets
Residual income
$
$
$
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IT Audit In China
Authors: LIU Ruzhuo
1st Edition
981428145X, 978-9814281454
