FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Jefferson Memorial Hospital is an Investment center as a division of Hospitals United. During the past year, Jefferson reported an after-tax Income of $7.2 million. Total Interest expense was $3,300,000, and the hospital tax rate was 30%. Total assets totaled $70.3
million, and non-interest-bearing current liabilities were $22,300,000. The required rate of return established by Jefferson is equal to 17% of Invested capital.
What is the residual income of Jefferson Memorial Hospital? Enter your answer in whole dollar.
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