Residual income for the hum division


The Hum Division of the Ho Company reported the following data for last year:

Sales $800,000
Operating expenses $650,000
Interest expense $50,000
Tax expense $30,000
Stockholders' equity $200,000
Average operating assets $600,000
Minimum required rate of return 12%

The residual income for the Hum Division last year was:

The return on investment last year for the Hum Division was:

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Accounting Basics: Residual income for the hum division
Reference No:- TGS094812

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