Tan Corporation of Japa follow:

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.5.3P
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Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions
follow:
Division
Osaka
Yokohama
$ 9,200,000
$ 552,000
$ 2,300,000
$ 22,000,000
$ 1,760,000
$ 11,000,000
Sales
Net operating income
Average operating assets
Required:
1. For each division, compute the return on investment (ROI).
2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 13%. Compute the residual income for each division.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Assume that the company evaluates performance using residual income and that the minimum required rate of return for any
division is 13%. Compute the residual income for each division.
Osaka
Yokohama
Residual income
2$
184,000 $
< Required 1
Required 2 >
Transcribed Image Text:Saved sp 2022 i Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama $ 9,200,000 $ 552,000 $ 2,300,000 $ 22,000,000 $ 1,760,000 $ 11,000,000 Sales Net operating income Average operating assets Required: 1. For each division, compute the return on investment (ROI). 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 13%. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 13%. Compute the residual income for each division. Osaka Yokohama Residual income 2$ 184,000 $ < Required 1 Required 2 >
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