Joseph Company reported the following information for the current year: $\begin{array}{llr}
\text {Sales } &\$787,000\
\text { Average operating assets} &\$375,000\
\text { Desired ROI } &12\%\
\text { Residual income } &\$11,250
\end{array}$
The company's operating income was:
A) $94,440.
B) $56,250.
C) $45,000.
D) $33,750.

Question

Joseph Company reported the following information for the current year: $\begin{array}{llr}
  \text {Sales  } &\$787,000\
 \text {  Average operating assets} &\$375,000\
 \text { Desired ROI } &12\%\
 \text { Residual  income } &\$11,250
\end{array}$
 The company's operating income was:
A) $94,440.
B) $56,250.
C) $45,000.
D) $33,750.

Quizplus · Accepted Answer

The Answer of Joseph Company reported the following information for the current year: $\begin{array}{llr}
  \text {Sales  } &\$787,000\
 \text {  Average operating assets} &\$375,000\
 \text { Desired ROI } &12\%\
 \text { Residual  income } &\$11,250
\end{array}$
 The company's operating income was:
A) $94,440.
B) $56,250.
C) $45,000.
D) $33,750.

Joseph Company Reported the Following Information for the Current Year