residual income ri the segmented income statements presented as follows are for the 1571648

Residual Income (RI) . The segmented income statements presented as follows are for the two divisions of Franklin Bikes. (This is the same company as the previous exercises. This exercise can be assigned independently.) Assume the Road Bikes division had average operating assets totaling $4,500,000 for the year, and the Mountain Bikes division had average operating assets of $800,000. The company’s cost of capital rate is 8 percent. Calculate RI for each division.