96) Inman Company has two fabric divisions, Cotton and Wool.  The following information is available:

  Cotton     Wool  



Invested capital50,000300,000

Cost of capital10 percent12 percent

Compute the following for each division:


b.income percentage of revenue.

c.capital turnover.

d.residual income.

97) The following data are available for the three divisions of Pomeroy Company:                          

Division ADivision BDivision C



ROI15 percent(f)12 percent

Invested capital$300,000(g)$70,000

Income percentage

   of revenue8 percent9 percent(j)

Cost of capital12 percent(h)10 percent

Capital turnover(c)2.5(k)

Residual income(d)$30,000(l)

Required: Provide the missing data.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *