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
jok3333 [9.3K]
2 years ago
11

Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,110,00

0; sales of $4,535,000; cost of goods sold of $2,560,000; and operating expenses of $1,382,000. Assume a target income of 11% of average invested assets. Compute residual income for the division:
Business
1 answer:
Ksivusya [100]2 years ago
7 0

Answer:

$1,83,000

Explanation:

Sales = 4,535,000

Cost of goods sold = $2,560,000

Operating expenses  =  $1,382,000

Average total assets = $4,110,000

Net Income =  Sales - Cost of goods sold -  Operating expenses

= $4,535,000 - $2,560,000 -  $1,382,000

=  $5,93,000

Target income = 10%  of Average total assets

= 0.10 × $4,110,000

= $410,000

Thus,

Residual income = Net income - Target income

= $5,93,000 - $410,000

= $1,83,000

You might be interested in
2 ways in which busisnsses may act ethically
hram777 [196]
Businesses can act ethically by being honest and fair
4 0
3 years ago
Today’s job seekers can choose whether to use technology to apply for any job or they can submit paper versions of all documents
strojnjashka [21]
True, Hope this helps :)
4 0
3 years ago
Read 2 more answers
has a monthly target operating income of $ 15 comma 000. Variable expenses are 70​% of​ sales, and monthly fixed expenses are $
seraphim [82]

Answer:

Margin of safety=55.6%

Explanation:

The formula for the operating income is as folows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=Answer:

Explanation:

The formula for the operating income is as follows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=$90,000

Current sales=$90,000

The formula for margin of safety is as follows;

Margin of safety=(Current sales level-break even point sales level)/current sales levels

At break even,

Operating income=0

0=S-(0.7 S+12,000)

0=S-0.7 S-12,000

0.3 S=12,000

S=12,000/0.3

S=40,000

Break even sales=$40,000

replacing;

Margin of safety=((90,000-40,000)/90,000}×100

Margin of safety=55.6%

7 0
3 years ago
The budget for the City of Goodville for the year ending December 31 was adopted and recorded on January 2 of the same year. Aft
scoray [572]

Answer:

See below

Explanation:

A budgetary fund is an income account and thus a debit balance suggests a deficit on the fund account. This means that governing bodies of City of Goodville have spent more money in their expenditures than they have brought in as income from the fund. This will be recorded as a liability in the balance sheet. Where as a credit balance would be a surplus and recorded as  an asset.

3 0
3 years ago
The board of directors of Capstone Inc. declared a $0.80 per share cash dividend on its $1 par common stock. On the date of decl
erik [133]

Answer: Please see below for answer

Explanation: To calculate dividends, we use the formulae

Dividend =(Number of shares issued -treasury stock held) x Dividend per share =

where number of shares issued = $18,000

treasury stock held = 6000 shares

Imputing the values in formulae becomes

($18,000 - $6000) x 0.80 = 12,000 x 0.80 = $9,600

Journal entry to record declaration of dividends of Capstone Inc.

   Account                                              Debit             Credit

Dividend                                               $9,600

Dividend payable                                                       $9,600

6 0
3 years ago
Other questions:
  • On October 30, Cleo Co. purchased a machine for $26,000 and estimates it will use the machine for four-years with a $2,000 salva
    9·1 answer
  • which of the following best explains why resources need to be allocated in the game of economics? A) natural resources are often
    11·2 answers
  • HURRY!!!!!!!!!!!!!!!!!!!!
    14·2 answers
  • Your broker calls to offer you the investment opportunity of a​ lifetime, the chance to invest in​ mortgage-backed securities. T
    10·1 answer
  • Efficiency is:
    12·1 answer
  • true or false. GDP measures total expenditures on final goods and services during a given period of time
    13·1 answer
  • Explain AHIMA's data quality management model, including the domains it covers and the data characteristics
    15·1 answer
  • The following transactions occurred during July:
    9·1 answer
  • Which points are most efficient for the utilization of resources on a production possibilities diagram?
    15·1 answer
  • Select the correct answer. cameron purchased an electric guitar for $1,875. the value of the guitar depreciates by 20% each year
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!