Based on an analySIs otoperationsi a company making sporting goods has determined that the Income...
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Accounting
Based on an analySIs otoperationsi a company making sporting goods has determined that the Income prowded by Its golt' ski, tennis: and football product lines are $1.5 million, $5 2 million: $1 8 milli: 53.2 million, respectively The accountant believes that the Investment levels In these product lines are $50 million: 355 million $35 million, and 521 million respectively. Requirement Use a residual income analysis to evaluate the performance of each ofthese product lines. assuming that the organization requires a 6% return on investment Select the formula and calculate residual Income for each otthe product ines Then, based on your analysis evaluate the performance of each ofthese product lines (Enter amounts in dollars and not Enter a "0" for amounts with a zero balance and use a minus sign or parentheses for a residual loss) Product line |:| 7 : Residualincomeoss) Evaluation Golf 2 Ski 2 Tennis 7 : Football : Select the formula and calculate residual income f Enter a "0" for amounts with a zero balance and us Product line Golf Ski Tennis Cost of capital Football Income The results abov Investment igures that coul Its to be must improve its Sales Turnover
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