Operating income and residual operating income

Related BrainMass Solutions

• Residual operating income

  of residual operating income.

• Innovation's financial statements for 2007

  Forecast operating income and residual operating income for 2008 if Innovation maintains the same core RNOA as in 2007. b.

• Contrasting ROI and Residual Income

  169461 Contrasting ROI and Residual Income - JW & Associates of Boston Please see attached. JW & Associates of Boston has two divisions that operate in Allston and Chelsea.

• Problems involving residual Income

  Residual income = Net Operating Income - Average Operating Assets X Minimum required rate of return Residual income = 36,000 - 180,000 X 15% Residual income = 9,000 This solution helps with a problem involving residual income.

• Calculate Residual Income for Midlands Design Ltd.

  Residual income = Net Operating Income - Average Operating Assets X Minimum Required rate of return Residual income = 400,000 - 2,200,000 X 16% Residual income = 48,000 The solution explains how to calculate residual income

• Operating income

  = Average Operating Assets * Desired ROI =$375000*12%=$45000 Residual Income = Operating income - Minimum required income Therefore operating income = Minimum required income + Residual Income =$45000+$11,250 =$56250 The solution contains calculation

• Return on investment measurement issues

  Compute each division's return on investment and residual income, assuming a 10% cost of capital.

• Residual income

  The return on investment last year for the Hum Division was: Return on Investment = Net Operating Income/Average Operating Assets =120000/600000 =20% =Answer The performance of the company is good as its Residual Income is positive and ROI is

• Computing Residual Income or Loss

  In February, the Commercial Products Division had average operating assets of $780,000 and net operating income of $139,800. What was the Commercial Products Division's residual income in February?

• Important information about Calculating Residual Income and Return on Investment

  256078 Important information about Calculating Residual Income and Return on Investment The Clipper Corporation had net operating income of $380,000 and average operating assets of $2,000,000.