1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yanalaym [24]
2 years ago
11

Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last

year's results: Adams Division Jefferson Division Net (after-tax) income $ 605,000 $ 315,000 Total capital employed 4,000,000 3,250,000 In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 8%. Required: 1. Calculate the residual income for the Adams Division. $ 2. Calculate the residual income for the Jefferson Division
Business
1 answer:
Taya2010 [7]2 years ago
4 0

Answer:

Explanation:

Adams division:

Net income - 605000

Minimum acceptable income = [Total capital employed*Rate of return] = 4000000*0.08=320000

Residual income= NI-Minimum acceptable income=605000-320000=285000

Jefferson division:

Net income - 315000

Minimum acceptable income = [Total capital employed*Rate of return] = 3250000*0.08=260000

Residual income= NI-Minimum acceptable income= 315000-260000= 55000

You might be interested in
The compensation associated with executive stock option plans is:A. The book value of a share of the company's shares times the
Mekhanik [1.2K]

Answer:

The correct answer is letter "B": The estimated fair value of the options.

Explanation:

Employee Stock Options or ESOs are equity compensations given be firms typically to high-range executives. The company provides the workers with call options so employees can purchase the derivatives at a certain price and time. These types of compensations are useful as motivations for the employees to help them perform better in their duties.

5 0
3 years ago
Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 10% and a standard de
Studentka2010 [4]
I’m sorry for making it happen again but it’s not like that
7 0
3 years ago
What were working conditions like before the labor movement?
Ivan
Im not sure, sorry, I wish I could help
8 0
2 years ago
What has a company accomplished when it creates a financial statement that projects income and expenditures over a specified fut
Fofino [41]

Answer:

Budgets

Explanation:

Budgets are prepared for a future date and it creates a basic estimate and projection of future income and expenditures.

The income statement is prepared which presents the income and expenditure for a period which has lapsed.

Basically for a period that is past now. When future projections are created based on analysis and expectations then it is called budget.

Budgets reflects the expected performance of the company in the near future, based on the estimate about what the company members can perform.

6 0
2 years ago
assume bell computer company operates in a perfectly competitive market producing 5,000 computers per day. at this output level,
Agata [3.3K]

In a perfectly competitive market bell computers will cause profits to increase by producing one more.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behaviour in a market economy, despite perfect competition seldom occurring in actual markets.

One of the most efficiently operating markets is one with perfect competition, when a large number of buyers and suppliers cooperate perfectly. Sadly, it is a hypothetical event that does not occur in the real world. But in order to guarantee a fair price for all goods and services, markets should strive to be as similar to this type of market as feasible.

Learn more about perfectly competitive market here:

brainly.com/question/13961518

#SPJ4

6 0
1 year ago
Other questions:
  • Eight years ago, ms. jones, a farmer, inherited a large parcel of land that had a fair market value of $150,000 at that time. sh
    10·1 answer
  • Read the following stock quote. How much is this stock worth?
    5·2 answers
  • Determine whether the results appear to have statistical​ significance, and also determine whether the results appear to have pr
    15·1 answer
  • Roosevelt Corporation has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expecte
    15·1 answer
  • If a person drives an automobile, they are required by law to have automobile liability insurance. in which situation would this
    10·1 answer
  • Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the curre
    12·1 answer
  • The Republic of Argonia, owing to its vast resources of arable land and fresh water, is an agrarian nation It exports agricultur
    14·2 answers
  • In many services, the acquisition and allocation of capacity plays a significant role in determining the level of operational re
    14·1 answer
  • While people and societies do, indeed, respond to the opportunities and constraints of their physical environments, ________ tak
    12·1 answer
  • Which elements do you think need to go in a fire prevention plan?
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!