Question
The operating income and the amount of invested assets in each division of Stewart Industries are as follows: Operating Income Invested Assets Retail Division $132,000
The operating income and the amount of invested assets in each division of Stewart Industries are as follows:
| Operating Income | Invested Assets | |
|---|---|---|
| Retail Division | $132,000 | $660,000 |
| Commercial Division | 57,600 | 320,000 |
| Data Analytics Division | 102,400 | 640,000 |
Assume that management has established a 10% minimum acceptable return for invested assets.
a. Determine the residual income for each division.
| Line Item Description | Retail Division | Commercial Division | Data Analytics Division |
|---|---|---|---|
| Operating income | $132,000 | $57,600 | $102,400 |
| Minimum amount of operating income | |||
| Residual income | $ | $ | $ |
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SAP S/4HANA Financial Accounting Certification Guide
Authors: Stefanos Pougkas
1st Edition
1493215507, 978-1493215508
