Aide Industries is a division of a major corporation. Data concerning the most r

Question

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

The division's turnover is closest to:

19.43

3.73

0.19

3.13

In August, the Universal Solutions Division of Jugan Corporation had average operating assets of $810,000 and net operating income of $91,500. The company uses residual income, with a minimum required rate of return of 12%, to evaluate the performance of its divisions. What was the Universal Solutions Division's residual income in August?

$5,700

–$5,700

–$10,980

$10,980

Garnick Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

The delivery cycle time was:

4.0 hours

9.7 hours

36.9 hours

38.6 hours

Madrazo Corporation uses residual income to evaluate the performance of its divisions. The minimum required rate of return for performance evaluation purposes is 20%. The Games Division had average operating assets of $412,000 and net operating income of $86,500 in June.

  Sales $18,300,000   Net operating income $942,000   Average operating assets $4,900,000

Explanation / Answer

1)correct option is "B" - 3.73

[turnover ratio = Net sales /average asset

                         = 18300000/4900000]

2)Residual income = operating income - (AVerage asset *require rate)

                                   = 91500- (810000*.12)

                                  = 91500 - 97200

                                  = -5700

correct option is "B"

3)correct option is "D" -38.6

[4+27.2+5.7+.9+.8]

4)Residual income = 86500 - (412000*.20)

                                     = 86500 - 82400

                                     = $ 4100

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