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sdas [7]
3 years ago
10

Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,280,00

0; sales of $4,705,000; cost of goods sold of $2,730,000; and operating expenses of $1,552,000. Assume a target income of 8% of average invested assets. Compute residual income for the division: $158,000. $38,100. $80,600. $33,840. $90,600.
Business
1 answer:
guapka [62]3 years ago
4 0

Answer:

Residual Income                             $80,600

Explanation:

Residual income = Operating income - Equity charge.

First lets calculate the operating income,

Sales                                               4,705,000

Less Cost of goods sold                (2,730,000)

Gross profit                                     1,975,000

Less operating expense                (1,552,000)

Operating income                            423,000

Equity charge (4,280,000*0.08)     (342,400)

Residual Income                               $80,600

Hope that helps.

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Project evaluation from the ________ viewpoint serves some useful purposes and/but should ________ the ________ viewpoint.
Afina-wow [57]

Project evaluation from the <u>local</u> viewpoint serves some useful purposes and/but should <u>be </u><u>subordinated</u><u> to</u> the <u>parent's</u> viewpoint.

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In a project, every aspect of the project such as risks, costs, scope, or return on investment (ROI) is measured in order to determine if it’s proceeding as planned. Thus, it should be subordinated to the parent's viewpoint.

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7 0
2 years ago
When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a:____
Gwar [14]

Answer:

c. Debit to Cash and a credit to Merchandise Inventory

Explanation:

When a buyer returns goods these are return outwards,

The correct entries to record them would be to debit cash as goods have been returned and credit the merchandise purchased so,

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Hope that helps.

7 0
3 years ago
If a​ firm's average total cost is less than price where MR​ = MC,
bekas [8.4K]

Answer:

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Explanation:

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3 0
3 years ago
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3 years ago
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Answer:

A. Households

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C. Government

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