Sanford Company reported the following information for the current year:
$$\begin{array} { l c c }
\text { Sales } & \$ 880,000 \
\text { Average operating assets } & \$ 475,000 \
\text { Desired ROI } & 10 \% \
\text { Net Income } & \$ 90,000
\end{array}$$ Required:
Based on this information,calculate the company's residual income.

Question

Sanford Company reported the following information for the current year:
 $$\begin{array} { l c c } 
\text { Sales } & \$ 880,000 \
\text { Average operating assets } & \$ 475,000 \
\text { Desired ROI } &  10 \% \
\text { Net Income } & \$  90,000
\end{array}$$ Required:
Based on this information,calculate the company's residual income.

Quizplus · Accepted Answer

The Answer of Sanford Company reported the following information for the current year:
 $$\begin{array} { l c c } 
\text { Sales } & \$ 880,000 \
\text { Average operating assets } & \$ 475,000 \
\text { Desired ROI } &  10 \% \
\text { Net Income } & \$  90,000
\end{array}$$ Required:
Based on this information,calculate the company's residual income.

Sanford Company Reported the Following Information for the Current Year