The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,300,000 2,613,000 1,150,000 Average Assets $ 23,000,000 20,100,000 14,600,000 QS 22-13 (Algo) Computing residual income LO A1 Assume a target income of 13% of average assets. Compute residual income for each center. Note: Enter losses with a minus sign. Residual income (loss) Cameras Phones Computers

The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,300,000 2,613,000 1,150,000 Average Assets $ 23,000,000 20,100,000 14,600,000 QS 22-13 (Algo) Computing residual income LO A1 Assume a target income of 13% of average assets. Compute residual income for each center. Note: Enter losses with a minus sign. Residual income (loss) Cameras Phones Computers

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.11E

See similar textbooks

Similar questions

[The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Average Assets $ 26,900,000 16,700,000 19,000, 000 Investment Center Income $ 5,350,000 2,338,000 900,000 Cameras Phones Computers QS 9-13 (Algo) Computing residual income LO A1 Assume a target income of 14% of average assets. Compute residual income for each center. (Enter losses with a minus sign.) Target Income Cameras Phones Computers Targeted return Target income % % Residual Income Cameras Phones Computers Residual income (loss)
The following information is provided for each Investment Center. Investment Center Cameras Income $ 4,950,000 Average Assets $ 24,200,000 Phones 2,093,000 Computers 1,100,000 16,100,000 14,000,000 QS 22-13 (Algo) Computing residual income LO A1 Assume a target income of 13% of average assets. Compute residual income for each center. Note: Enter losses with a minus sign. Residual income (loss) Cameras Phones Computers
Required information [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Assume a target income of 14% of average assets. Compute residual income for each center. Note: Enter losses with a minus sign. Income Less: Target income Residual income (loss) Income $ 5,350,000 2,282,000 950,000 $ Cameras 5,350,000 $ Average Assets $28,100,000 16,300,000 16,400,000 Phones 2,282,000 $ Computers 950,000
! Required information [The following information applies to the questions displayed below.] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 6,000,000 2,295,000 1,050,000 Assume a target income of 15% of average assets. Compute residual income for each center. Note: Enter losses with a minus sign. Residual income (loss) Cameras Average Assets $ 26,900,000 15,300,000 13,600,000 Phones Computers
Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000 $198,000 (a) 12% (b) (c) $800,000 (d) (e) (f) $120,000 $40,000 $750,000 (g) 14% (h) $90,000 (i) $1,800,000 $441,000 (j) 15% (k) (l) Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. a. fill in the blank 1 % b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4 e. fill in the blank 5 % f. fill in the blank 6 % g. $fill in the blank 7 h. fill in the blank 8 % i. $fill in the blank 9 j. fill in the blank 10 % k. $fill in the blank 11 l. $fill in the…
Selected data from an investment center of IROL Inc. follow:Sales $8,000,000Net book value of assets, beginning 2,500,000Net book value of assets, ending 2,600,000Net operating income 640,000Minimum rate of return 12%Required1. Calculate return on sales (ROS), asset turnover (AT), and return on investment (ROI).2. Calculate residual income (RI).
Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $1,200,000 $198,000 (a) 12% (b) (c) $800,000 (d) (e) (f) $120,000 $40,000 $750,000 (g) 14% (h) $90,000 (i) $1,800,000 $441,000 (j) 15% (k) (l) Determine the missing items, identifying each item by the appropriate letter. Round your percentages to one decimal place. a. % b. $ c. $ d. $ e. % f. % g. $ h. % i. $ j. % k. $ l. $
Deuk Seon have the following investment centers. Several items are missing from the following table of rate of return on investment and residual income. Determine the missing items, identifying each item by the appropriate letter. Department Invested Assets Income from Operations Rate of Return on Investment Min. Rate of Return Min. Amt. of Income from Operations Residual Income Taek (a) (b) (c) 16% P128,000 P10,000 Jung Hwan P850,000 P153,000 (d) 12% (e) (f) Sun woo P825,000 (g) 20% (h) (i) P24,000 Dong Ryong (j) P129,000 24% (k) P60,000 (l) (a) Determine the missing items, identifying each by number. (b) Which division is most profitable in terms of income from operations? (c) Which division is most profitable in terms of rate of return on investment?
Determining missing items in return and residual income computations Data are presented in the following table of returns on investment and residual incomes: Invested Assets Operating Income Return on Investment Minimum Return on Investment Minimum Acceptable Operating Income Residual Income $870,000 $200,100 (a) 13% (b) (c) $520,000 (d) (e) (f) $57,200 $26,000 $340,000 (g) 14% (h) $37,400 (i) $260,000 $49,400 (j) 11% (k) (l)
The following information is related to the current operation of Kenanga Branch. Operating income 5,000,000 Sales revenue 62, 500,000 Average operating asset 25,000,000 Average balance in current liabilities 13,400,000 The management of the company has decided that the minimum return required is 11 percent. Residual income is another approach that can be used to measure performance of an investment centre. Define residual income and determine the residual income for Kenanga Branch.
Calculate the residual income with the following data: Controllable margin $202,596 Minimum Rate of Return 11% Average Operating Assets $3,092,235 Round to the nearest whole dollar, no decimal places. Note: Controllable margin is the same as net income for a segment with control over the costs. Minimum rate of return is the same as the cost of capital.
Determining missing items in return and residual income computations Data for Uberto Company are presented in the following table 'of returns on investment and residual incomes: Invested Income from Return on Minimum Minimum Acceptable Residual Operations Investment Return Income from Operations Income Assets $925,000 $185,000 (a) 15% (b) (c) $775,000 (d) (e) (f) $93,000 $23,250 $450,000 (g) 18% (h) $58,500 (i) $610,000 $97,600 (j) 12% (k) (1) Determine the missing values, identifying each item by the appropriate letter.