In November, the Universal Solutions Division of Keaffaber Corporation had average operating assets of $480,000 and net operating income of $46,200. The company uses residual income, with a minimum required rate of return of 11%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in November?
A. $6,600
B. $5,082
C. ($6,600)
D. ($5,082)
Answer: C
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Which of the following audit procedures would be least likely to disclose the existence of related party transactions of a client during the period under audit?
A. Confirming purchases and sales transactions with the vendors and/or customers involved. B. Reading "conflict-of-interest" statements obtained by the client from its management. C. Scanning accounting records for large transactions at or just prior to the end of the period under audit. D. Reading minutes of the Board of Directors meetings for authorization or discussion of material transactions.
An agency coupled with an interest is revocable without the consent of the agent.
Answer the following statement true (T) or false (F)
Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces model. Which of the following represents supplier power in the soft drink industry?
A. Vitamin water, fruit juice, coffee are all beverage options available to consumers. B. Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store. C. Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases. D. Zevia Natural Diet Soda begins selling directly over the Internet.
The reason for a company’s existence is called its ______.
a. vision b. mission c. center d. inspiration