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Deffense [45]
3 years ago
7

zzy Division of Marine Boats Corporation had the following results last year​ (in thousands). Sales $ 4 comma 700 comma 000 Oper

ating income $ 600 comma 000 Total assets $ 3 comma 600 comma 000 Current liabilities $ 220 comma 000 ​Management's target rate of return is 12​% and the weighted average cost of capital is 5​%. What is the Izzy​ Division's Residual Income​ (RI)? A. $ 72 comma 000 B. $ 432 comma 000 C. $ 168 comma 000 D. $ 600 comma 000
Business
1 answer:
o-na [289]3 years ago
3 0

Answer:

C. $ 168 comma 000

Explanation:

The computation of the residual income is shown below:

= Operating income - minimum return

where,  

Operating income is $600,000

And, the minimum return equal to

= Invested asset amount × minimum rate of return

= $3,600,000 × 12%

= $432,000

Now put these values to the above formula  

So, the value would equal to  

= $600,000 - $432,000

= $168,000

We simply applied the above formula

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2 years ago
the gross sales for store B were 876500. the custmer returns and allowances were 10%. what was the dollar amount of returns and
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Answer:

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7 0
3 years ago
What industries are presented in your community. How would you define the economic health of your community based on the industr
Igoryamba

Answer:

The healthcare industry can be explained as the medical industry or healthcare industry. It represent to the health economy.

Explanation:

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7 0
3 years ago
Raphael Corp. incorrectly expensed a major addition to equipment when the company should have capitalized the expenditure. What
noname [10]

When Raphael Corp. incorrectly mentioned an expense of equipment addition instead of capitalizing the effect of the same, then in such case, the net income of the company is understated in the financial statements.

<h3>What is net income?</h3>

The income which is left at the end of an organization at the end of a financial period after making all the regulatory and compliant payments and deductions, such as taxes and depreciation, it is known as net income.

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7 0
2 years ago
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