Business, 19.12.2019 19:31 HighSchool97654

The sales, income from operations, and invested assets for each division of wren co. are as follows:

income from - invested assets
sales - operations - assets
division c $5,000,000 $630,000 $4,000,000
division d 6,800,000 760,000 3,900,000
division e 3,750,000 750,000 7,500,000
management has established a minimum rate of return for invested assets of 10%

1. determine the residual income (ri) for each division

2. based on residual income, what of the division is the most profitable

3. looking at these three divisions, does the division with the highest residual income have the highest rate of return on invested assests (roi)?

4. is it always true that the divsion with the highest ri will have the highest roi? why or why not?

me

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 03:00

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

Answers: 1

Answer

Business, 22.06.2019 06:50

On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500

Answers: 3

Answer

Business, 22.06.2019 17:00

Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. she also wants to chart out all of her financial transactions for the past federal fiscal year. what duration should jillian consider to calculate her finances? from (march or january )to (december or april)?

Answers: 1

Answer

Business, 22.06.2019 20:30

Contrast two economies that transitioned to capitalism and explain what factors affected the ease kf their transition as welas the “face” of capitalism that each has adopted

Answers: 2

Answer

You know the right answer?

The sales, income from operations, and invested assets for each division of wren co. are as follows:...

Questions