ABC Company is a service center with the following operating data: Sales P 450,000 Operating Income 25,000 Net Income after tax 8,000 Average assets invested 500,000 Shareholders' equity 200,000 Minimum required ROI 6% Based on the above information, which one of the following statements is correct? ABC Company has a 1. Return on investment of 4% 2. Residual income of (P5,000) 3. Return on investment of 1.6% 4. Residual income of (P22,000). O 1 2 3 4
ABC Company is a service center with the following operating data: Sales P 450,000 Operating Income 25,000 Net Income after tax 8,000 Average assets invested 500,000 Shareholders' equity 200,000 Minimum required ROI 6% Based on the above information, which one of the following statements is correct? ABC Company has a 1. Return on investment of 4% 2. Residual income of (P5,000) 3. Return on investment of 1.6% 4. Residual income of (P22,000). O 1 2 3 4
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT