Pritchard Company reports the below for its beverage and cheese
divisions.
($millions) | Beverage Division | Cheese Division | |||||
Invested assets, beginning | $ | 2,692 | $ | 4,485 | |||
Invested assets, ending | 2,608 | 4,415 | |||||
Sales | 2,696 | 3,940 | |||||
Operating income | 364 | 649 | |||||
Each of the company’s divisions has a required rate of return of
5%. For each division, compute residual income. (Enter your
answers in millions.)
|
Answers
$ millions | Beverages | Cheese | |
A | Average Invested Assets | 2650 | 4450 |
B | Target return | 5% | 5% |
C = A x B | Target Income | 132.5 | 222.5 |
Residual Income | Beverages | Cheese | |
D | Operating Income | 364 | 649 |
E = C | Target Income | 132.5 | 222.5 |
F = D - E | Residual Income | 231.5 | 426.5 |
Pritchard Company reports the below for its beverage and cheese divisions. ($millions) Beverage Division Cheese Division...
Required information [The following information applies to the questions displayed below.) Pritchard Company reports the below for its beverage and cheese divisions. (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,692 2,608 2,696 Cheese Division $4,485 4.415 3,940 364 Each of the company's divisions has a required rate of return of 5%. For each division, compute residual income. (Enter your answers In millions.) (5 millions) Beverage Cheese Targeted return Target income Residual income Beverage Cheese I...
Required information [The following information applies to the questions displayed below.] Pritchard Company reports the below for its beverage and cheese divisions. Cheese Beverage Division $2,692 2,608 2,696 364 ($millions) Division Invested assets, beginning Invested assets, ending Sales $4,485 4,415 3,940 649 Operating income .Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment....
Required information The following information applies to the questions displayed below.] Pritchard Company reports the below for its beverage and cheese divisions. (Smillions) Invested assets, beginning Invested assets, ending Sales Operating income Beverage Division $2,696 2,610 2,698 366 Cheese Division $4,489 4,417 3,942 651 Each of the company's divisions has a required rate of return of 7%. For each division, compute residual income (Enter your in millions.) Answer is not complete. Cheese Beverage 366 x $ X (5 millions) Target...
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Required information [The following information applies to the questions displayed below) A food manufacturer reports the following for two of its divisions for a recent year. Cheese Division Beverage Division ($ millions) Invested assets, beginning Invested assets, ending $2,692 $4,485 4,415 3,940 2,688 2.696 Sales Operating incone 364 649 1. Compute return on investment. 2 Compute profit margin. 3. Compute investment turnover for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2...
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