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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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3 years ago
A company's Office Supplies account shows a beginning balance of $630 and an ending balance of $460. If office supplies expense
nalin [4]

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3 years ago
On January 1, Year 1, Grade Company paid $300,000 for 20,000 shares of Medium Company's common stock, which represents a 15% inv
slavikrds [6]

Answer:

B) $300,000.

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3 years ago
Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system. Fo
Olin [163]

Answer:

Inventory records

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Legacy systems can be difficult to integrate in a newer system because of their unique structure.

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3 years ago
Generally, filmmakers want movie titles that are short, memorable, appealing to consumers, and without legal restrictions. These
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<u>Answer:</u>

<em>Filmmakers want movie titles that are short, memorable, appealing to consumers, and without legal restriction to </em><u><em>appeal to multiple cultures </em></u>

<em></em>

<u>Explanation:</u>

Many independent filmmakers are amazed at the measure of exertion and ability required to verify a fair conveyance understanding. With the emotional increment in an autonomous generation, it is evident that numerous movie producers have aced the skills expected to confirm the cash and hardware and deliver the film.

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3 years ago
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