Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales $34,610,000 $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

Calculating Residual Income Forchen, Inc., provided the following information for two of its divisions for last year: Small Appliances Division Cleaning Products Division Sales $34,610,000 $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

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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During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?
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
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 $31,380,000 Operating income 2,326,200 1,254,500 Operating assets, January 1 6,393,000 5,800,000 Operating assets, December 31 7,540,000 6,790,000 Forchen, Inc., requires an 6 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
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 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?
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.
Mitsu Division has the following results for the year: Revenues $1,080,000Variable expenses 440,000Fixed expenses 400,000Total divisional assets are $1,600,000. The company's minimum required rate of return is 14 percent. What is the residual income for Scottso?
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.
Imagination Corporation uses residual income to evaluate the performance of its divisions. Imagination's minimum required rate of return is 10%. In April, the Commercial Products Division had average operating assets of $105,000 and net operating income of $9,700. What was the Commercial Products Division's residual income in April? Multiple Choice $970. $(970). $800. $(800).
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
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).

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bartleby, a Learneo, Inc. business

	Small Appliances Division	Cleaning Products Division
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