Residual Income?
October 18, 2008 – 2:47 amJeff N asked:
The company had $360,000 in total assets and $94,000 in operating profit this year, and the company requires at least a 12% return on assets. Compute the company’s residual income.
Zachary
The company had $360,000 in total assets and $94,000 in operating profit this year, and the company requires at least a 12% return on assets. Compute the company’s residual income.
Zachary
2 Responses to “Residual Income?”
my company has a billion a year, a credit of 5A1, from brad and dunn, and they actually do pay. once you get into the higher ranks, (gold), they buy you a car, upwards, a house, a double diamond a million bucks. can’t beat that
By spiritwalker on Oct 19, 2008
I think the answer is : 31 920
(Total assets - Operating profit) * 12%
=(360 000 - 94 000) * 12%
= 266 000 * 12%
=31 920
(You’d better check though. Doesn’t your Question bank come with answers too?)
By "The yellow one is the sun! on Oct 20, 2008