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

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The Answer of 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

The Following Data Pertains to the Electronics Division of the Maxwell