! Required information Use the following information for the Exercises below. [The following information applies to the

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Required Information Use The Following Information For The Exercises Below The Following Information Applies To The 1 (149.92 KiB) Viewed 30 times

! Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Invested assets, beginning Invested assets, ending Sales Operating income. Exercise 22-13 Residual income LO A1 ($ millions) Assume that each of the company's divisions has a required rate of return of 7%. Compute residual income for each division. (Enter your answers in millions.) Average assets Targeted return Answer is complete but not entirely correct. Beverage Cheese Target income Residual Income Operating income Less: Target income Residual income ✓$ $ ✓ $ $ 2,688 X $ 7% 188 Beverage $ 362 $ (188) X Beverage Division $2,688 2,606 2,694 362 174 × $ 4,481 X 7% 314 Cheese 647✓ Cheese Division $4,481 4,413 3,938 647 (310) X 337 X