The Following Data Pertains to the Electronics Division of the Maxwell

question 68

Multiple Choice

The following data pertains to the Electronics Division of the Maxwell & Ashley Company: $\begin{array}{lr}\text { Sales } & \$ 1,000,000 \\\text { Invested capital } & \$ 700,000 \\\text { Noninterest-bearing current liabilities } & \$ 80,000 \\\text { Net operating profit after taxes } & \$ 82,000 \\\text { Minimum required rate of return } & 9 \% \\\text { Cost of capital } & 7 \%\end{array}$ How much is residual income for the Electronics Division?

• A)$19,000
• B)$33,000
• C)$26,200
• D)$38,600