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The Following Data Are Available for the Three Divisions of Barnum

Question 38

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The following data are available for the three divisions of Barnum Company:  Division X Division Y Division Z Income  (a) $45,000 (i)  Revenue  (b)  (e) $84,000 ROI 15%(f)12% Invested capital $150,000 (g) $35,000 Return on sales 8%9%(j) Cost of capital 12%(h)10% C apital turnover ( c) 2.5(k) Residual income  (d) $15,000 (1) \begin{array}{llll}&\text { Division } X&\text { Division } Y&\text { Division } Z\\\text { Income } & \text { (a) } & \$ 45,000 & \text { (i) } \\\text { Revenue } & \text { (b) } & \text { (e) } & \$ 84,000 \\\text { ROI } & 15 \% & (\mathrm{f}) & 12 \% \\\text { Invested capital } & \$ 150,000 & \text { (g) } & \$ 35,000\\\text { Return on sales } & 8 \% & 9 \% & (\mathbf{j}) \\\text { Cost of capital } & \mathbf{1 2} \% & (\mathbf{h}) & 10 \% \\\text { C apital turnover } & (\text { c) } & 2.5 & (\mathbf{k}) \\\text { Residual income } & \text { (d) } & \$ 15,000 & \text { (1) }\end{array} Required: Provide the missing data.

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a. $150,000 x 15% = $22,500 b. $22,500 /...

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