(solution) Information for Tube division is as follows: Net earnings for division $40,000 Asset base for division $100,000

(solution) Information for Tube division is as follows: Net earnings for division $40,000 Asset base for division $100,000

Information for Tube division is as follows: Net earnings for division $40,000 Asset base for division $100,000 Target rate of return 16% Operating income margin 12% Weighted average cost of capital 8% What is Tube’s residual income?$26,000$24,000$32,000$95,200 23 is a period of time when sales increase at an increasing rate.The start-up stageThe growth stageThe maturity stageThe decline stage 32Texas Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 25 percent of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows: MonthSalesFebruary$440,000March$450,000April$480,000May$500,000June$510,000 What is the amount of fabric purchases during the month of March?$480,000$336,000$288,000$300,000