Joseph Company reported the following information for the current year: $\begin{array}{llr}
\text {Sales } &\$800,000\
\text { Average operating assets} &\$388,000\
\text { Desired ROI } &13\%\
\text { Residual income } &\$11,900
\end{array}$
The company's operating income was:
A) $104,000.
B) $62,340.
C) $50,440.
D) $38,540.

Question

Joseph Company reported the following information for the current year: $\begin{array}{llr}
  \text {Sales  } &\$800,000\
 \text {  Average operating assets} &\$388,000\
 \text { Desired ROI } &13\%\
 \text { Residual  income } &\$11,900
\end{array}$
 The company's operating income was:
A) $104,000.
B) $62,340.
C) $50,440.
D) $38,540.

Quizplus · Accepted Answer

The Answer of Joseph Company reported the following information for the current year: $\begin{array}{llr}
  \text {Sales  } &\$800,000\
 \text {  Average operating assets} &\$388,000\
 \text { Desired ROI } &13\%\
 \text { Residual  income } &\$11,900
\end{array}$
 The company's operating income was:
A) $104,000.
B) $62,340.
C) $50,440.
D) $38,540.

Joseph Company Reported the Following Information for the Current Year