Craylon Corp has three divisions, which operate autonomously. Their results for 2015 were as follows:
The company's desired rate of return is 15%.
Required:
a.Compute each division's ROI. Round to three decimal places.
b.Compute each division's residual income.
Definitions:
Balance Per Company's Records
This refers to the amount shown in a company's financial records or accounting books.
Balance Per Books
The ending balance in a company's accounting records for a specific account.
Notes Collected
Receipts from the collection of promissory notes, representing cash inflows from financial claims against others.
Balance Per Books
The amount of money shown in the company's financial records, not necessarily reflecting cash available or actual account balances due to outstanding transactions.
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