Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Forchen, Inc., requires an 8 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ fill in the blank 1 2. Calculate residual income for the Cleaning Products Divi $ fill in the blank 2

Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Forchen, Inc., requires an 8 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ fill in the blank 1 2. Calculate residual income for the Cleaning Products Divi $ fill in the blank 2

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 2. For the Cleaning Products Division, calculate: A. Average operating assets B. Margin C. Turnover D. ROI
Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, Calculate: A. Average operating assets B. Margin C. Turnover D. ROI 2. For the Cleaning Products Division, calculate: A. Average operating assets B. Margin C. Turnover D. ROI 3. What if operating income for the small appliances division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).
Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 1. For the Small Appliances Division, Calculate: A. Average operating assets B. Margin C. Turnover D. ROI
Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Required: 3. What if operating income for the small appliances division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).
Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,910,000; sales of $5,485,000; cost of goods sold of $3,280,000; and operating expenses of $1,158,000. Assume a target income of 14% of average invested assets. Compute residual income for the division: Multiple Choice $146,580. $279,100. $146,627. $219,600. $104,700.
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,670,000 $31,320,000 Operating income 2,773,600 1,252,800 Operating assets, January 1 6,394,000 5,600,000 Operating assets, December 31 7,474,000 6,000,000 Forchen, Inc., requires an 8 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ fill in the blank 1 2. Calculate residual income for the Cleaning Products Division. $ fill in the blank 2 3. What if the minimum required rate of return was 9 percent? How would that affect the residual income of the two divisions? Small Appliances Division residual income would be Cleaning Products Division residual income would be
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,200,000; sales of $4,625,000; cost of goods sold of $2,650,000; and operating expenses of $1,472,000. Assume a target income of 10% of average invested assets. Compute residual income for the division: Multiple Choice $197,500. $50,300. () $83,000. $40,500. $93,000.
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small AppliancesDivision Cleaning ProductsDivision Sales $34,610,000 $31,300,000 Operating income 2,723,200 1,254,300 Operating assets, January 1 6,394,000 5,750,000 Operating assets, December 31 7,520,000 6,120,000 Forchen, Inc., requires an 7 percent minimum rate of return. Required: 1. Calculate residual income for the Small Appliances Division. $ fill in the blank 2. Calculate residual income for the Cleaning Products Division. $ fill in the blank
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$ 37,880,000Net operating income$ 3,508,960Average operating assets$ 9,400,000The company's minimum required rate of return14% The division's residual income is closest to:
Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales $34,620,000 $31,340,000 Operating income 2,397,700 1,254,300 Operating assets, January 1 6,400,000 5,760,000 Operating assets, December 31 7,590,000 6,640,000 Forchen, Inc., requires an 8 percent minimum rate of return. 1. Calculate residual income for the Small Appliances Division. $ 2. Calculate residual income for the Cleaning Products Division. $ 3. What if the minimum required rate of return was 9 percent? How would that affect the residual income of the two division?
Dickonson Products is a division of a major corporation. The following data are for the last year of operations: Sales... $16,640,000 $399,360 Net operating income Average operating assets $4,000,000 The company's minimum required rate of return. 18% The division's residual income is closest to: Select one: a. $(320,640) b. $1,119,360 c. $399,360 d. $(2,595,840)

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bartleby, a Learneo, Inc. business

	Small Appliances Division	Cleaning Products Division
Sales	$34,670,000	$31,320,000
Operating income	2,773,600	1,252,800
Operating assets, January 1	6,394,000	5,600,000
Operating assets, December 31	7,474,000	6,000,000