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The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales Operating income Total assets Current liabilities $4,200,000 $840,000

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The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales Operating income Total assets Current liabilities $4,200,000 $840,000 $1,500,000 $260,000 Management's target rate of return is 11% and the weighted average cost of capital is 8%. What is the Top Hat Division's Residual Income (RI)? $580,000 $336,000 $675,000 $378,000

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