Find the total amount of the bonus pool

Assignment Help Accounting Basics
Reference no: EM133147081

Question - Household Brands Incorporated (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies.

HBI is now, in 2022, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years:


Revenue

Operating Income

Assets

Cosmetics




2020

$26,100

$1,900

$9,400

2021

20,100

1,800

9,100

2022

17,800

1,400

9,310

Household




2020

15,500

1,800

7,510

2021

14,300

1,000

7,100

2022

9,900

930

6,290

Electronics




2020

13,700

1,600

4,480

2021

9,540

1,000

4,000

2022

8,760

910

4,200

Household Brands Total




2020

55,300

5,300

21,390

2021

43,940

3,800

20,200

2022

36,460

3,240

19,800

The current compensation package is an annual bonus award. The senior executives share in the bonus pool. The pool is calculated as 20% of the annual residual income of the company.

The residual income is defined as operating income minus a cost of capital charge of 15% of invested assets.

Required - Find the total amount of the bonus pool for 2022?

Reference no: EM133147081

Questions Cloud

What is cougar consulting company gross payroll : Federal Unemployment Tax Assesment (FUTA) rate is 0.9 percent. What is Cougar Consulting Company gross payroll
How much is the interest revenue recognized by red : Annual lease payments are 135,000 and are payable in advance for 8 years. How much is the interest revenue recognized by Red in 2022
What is risk management : Question - What is risk management? Discuss its importance? What measures can be put in place to monitor and control risk
Compute the deduction for oasdi tax : On February 1, 20-- his gross pay was $800 (three days working, one paid vacation day, and one paid sick day). Compute the Deduction for OASDI tax
Find the total amount of the bonus pool : The current compensation package is an annual bonus award. The senior executives share in the bonus pool. Find the total amount of the bonus pool
Write down the null and alternative hypotheses : What are the hypotheses to test whether the mean entry-level electrical engineering salary is greater than the mean entry-level mechanical engineering salary?
What is its assets turnover : Butters Corporation has a profit margin of 7 percent and its return on assets (investment) is 25.2 percent. What is its assets turnover
Prepare the working paper entries eliminating entries : Prepare the working paper entries eliminating entries (C), (E), (R), (O) and (N) for PayPal Company and subsidiary for the year ended December 31, 2020
What money moves do you recommend for john : He is living at home for now, but really wants to move out in the next 6 months. What money moves do you recommend for John

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd