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Top management of the Runner Corporation is trying to construct a performance evaluation system to use to evaluate each of its three divisions. This past
Top management of the Runner Corporation is trying to construct a performance evaluation system to use to evaluate each of its three divisions. This past year's financial data are as follows: Total assets Noninterest-bearing current liabilities Net income Interest expense Tax rate Required rate of return Division A Division B Division C $929,500 $18,702,200 $11,154,400 52,560 2,190,700 1,047,600 195,660 1,807,800 1,335,200 52,560 1,994,500 1,173,390 40% 40% 40% 10% 12% 14% How would the divisions be ranked (from best to worst performance) if the evaluation were based on residual income? (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).) Division A Division B Division C Residual Income
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