Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,930,000; sales of $5,505,000; cost of goods sold of $3,290,000; and operating expenses of $1,160,000. Assume a target income of 14% of average invested assets. Compute residual income for the division:

$224,800

Explanation:

Given that,

Average total assets = $5,930,000;

Sales = $5,505,000;

Cost of goods sold = $3,290,000

Operating expenses = $1,160,000

Target income = 14% of average invested assets

Residual income is calculated by the following formula:

= Net income - Target income

= Net income - (Average operating assets × Return)

So, there is a need to calculate the net income first. It is calculated as follows:

Gross profit = Sales - Cost of goods sold

                    = $5,505,000 - $3,290,000

                    = $2,215,000

Net income = Gross profit - Operating expenses

                   = $2,215,000 - $1,160,000

                   = $1,055,000

Therefore, the residual income is determined by the difference between net income and target income. It is calculated as follows:

= Net income - (Average operating assets × Return)

= $1,055,000 - ($5,930,000 × 0.14)

= $1,055,000 - $830,200

= $224,800

statement of owner"s equity;

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.