Urbandale Company Has Two Fabric Divisions-Linen and Cotton Compute the Following for Each Division:
A

Essay

Urbandale Company has two fabric divisions-Linen and Cotton. The following information is available: $$\begin{array} { l l l } & \text { Linen } & \text { Cotton } \\\text { Revenue } & \$ 200,000 & \$ 250,000 \\\text { Income } & 30,000 & 90,000 \\\text { Invested capital } & 100,000 & 150,000 \\\text { Cost of capital } & 12 \% & 10 \%\end{array}$$ Compute the following for each division:
a. ROI
b. return on sales
c. capital turnover
d. residual income