Mindy Norton Company reported the following information for 2012: $$\begin{array} { l r }
\text { Sales } & \$ 500,000 \
\text { Average Operating Assets } & \$ 300,000 \
\text { Desired ROI } & 10 \% \
\text { Net Income } & \$ 45,000
\end{array}$$
Required:
Based on this information, calculate the company's residual income for 2012.

Question

Mindy Norton Company reported the following information for 2012: $$\begin{array} { l r } 
\text { Sales } & \$ 500,000 \
\text { Average Operating Assets } & \$ 300,000 \
\text { Desired ROI } & 10 \% \
\text { Net Income } & \$ 45,000
\end{array}$$ 
Required:
Based on this information, calculate the company's residual income for 2012.

Quizplus · Accepted Answer

The Answer of Mindy Norton Company reported the following information for 2012: $$\begin{array} { l r } 
\text { Sales } & \$ 500,000 \
\text { Average Operating Assets } & \$ 300,000 \
\text { Desired ROI } & 10 \% \
\text { Net Income } & \$ 45,000
\end{array}$$ 
Required:
Based on this information, calculate the company's residual income for 2012.

Mindy Norton Company Reported the Following Information for 2012 Required: Based on This Information, Calculate the Company's Residual Income

Mindy Norton Company Reported the Following Information for 2012 Required:
Based on This Information, Calculate the Company's Residual Income