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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
economic Value Added
e8A. aCCounting ConneCtion ▶ Game, LLP, is evaluating the performance of three divisions: Rock, Scissors, and Paper. Using the data that follow, compute the economic value added by each division, and comment on each division’s performance.
Rock               scissors               Paper
Â
|
Sales |
$50,000 |
$50,000 |
$50,000 |
|
After-tax operating income |
$5,000 |
$5,000 |
$20,000 |
|
Total assets |
$25,000 |
$12,500 |
$25,000 |
|
Current liabilities |
$5,000 |
$5,000 |
$5,000 |
|
Cost of capital |
15% |
15% |
15% |
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