Killian Corp. has a residual income of $36,000 on invested assets of $451,000. If the hurdle rate is 10%, what is the operating income? A.) 3,600 B.) 45,100 C.) 81,100 D.) 36,000
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Killian Corp. has a residual income of $36,000 on invested assets of $451,000. If the hurdle rate is 10%, what is the operating income?
A.) 3,600
B.) 45,100
C.) 81,100
D.) 36,000
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- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.A company has pre-tax or operating income of $120,000. If the tax rate is 40%, what is the companys after-tax income? A. $300,000 B. $240,000 C. $48,000 D. $72,000Mason Corporation had $1,096,000 in invested assets, sales of $1,237,000, income from operations amounting to $203,000, and a desired minimum rate of return of 15%. The residual income for Mason Corporation is a.$38,600 b.$54,040 c.$0 d.($5,300)
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- The AAA Division has permanent current assets of P50,000 and operating non-current assets of 350,000. It provides annual operating income after tax of P100,000. Its cost of capital is 15% but the minimum required rate of return by the entity is 16%. 1. How much is its current return on investment? 2. How much is its economic value added? 3. How much is its residual income? 4. Assume that the Senna Division is presented by the head office to manage a P60,000 investment option yielding a 20% return on its investment. Should the Division agree to manage this investment opportunity? A. Yes, because the ROI will increase. B. Yes, because the RI and EVA will increase. C. No, because the ROI will decrease. D. No, because the RI and EVA will decrease.Mason Corporation had $1,027,000 in invested assets, sales of $1,215,000, operating income amounting to $236,000, and a desired minimum return on investment of 15%. The investment turnover for Mason Corporation is a.0.95 b.1.42 c.1.77 d.1.18Mason Corporation had $1,164,000 in invested assets, sales of $1,240,000, income from operations amounting to $243,000, and a desired minimum return of 12%. Round your answer to two decimal places. The investment turnover for Mason Corporation is a.1.07 b.0.85 c.1.28 d.1.60
