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

Question

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

Quizplus · Accepted Answer

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

Sanford Company Reported the Following Information for the Current Year