Economic Value Added
SE 9. Complete the current liabilities, total assets
current liabilities, and economic value added calculations for investment centers M and N:
|
Subsidiary M |
Subsidiary N |
|
|
Sales |
$15,000 |
$18,000 |
|
After-tax operating income |
$1,000 |
$1,100 |
|
Total assets |
$4,000 |
$5,000 |
|
Current liabilities |
$1,000 |
$? |
|
Total assets current |
||
|
liabilities |
$? |
$3,500 |
|
Cost of capital |
15% |
15% |
|
Economic value added |
$? |
$? |