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    Residual income for belt division Allen Corp.

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    The following selected data pertain to the belt division of Allen Corp. for last year:

    Sales 1,000,000
    Average operating assets 400,000
    Net operating income 100,000
    Turnover 2.5
    Minimum required return 20%

    Reference: 12-6

    How much is the residual income?

    20,000
    80,000
    900,000
    100,000

    © BrainMass Inc. brainmass.com June 3, 2020, 6:48 pm ad1c9bdddf
    https://brainmass.com/business/accounting/residual-income-belt-division-allen-corp-75691

    Solution Summary

    This provides the steps to calculate the residual income.

    $2.19

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