Operating data from Tindall Company for last year follows:
-The residual income was:
A)$18,000
B)$10,000
C)$12,000
D)$16,000

Question

Operating data from Tindall Company for last year follows: 
-The residual income was:
A)$18,000 
B)$10,000 
C)$12,000 
D)$16,000

Quizplus · Accepted Answer

Turnover = Sales F1F1F1S1F1F1F10 Average operating assets
Average operating assets = Sales F1F1F1S1F1F1F10 Turnover
= $900,000 F1F1F1S1F1F1F10 1.5 = $600,000
ROI = Net operating income F1F1F1S1F1F1F10 Average operating assets
Net operating income = ROI F1F1F1S1F1F1F10 Average operating assets
= 12% F1F1F1S1F1F1F10 $600,000 = $72,000
 11eaa48f_7b36_355d_9e4a_95ab571886a6_TB2485_00

Operating Data from Tindall Company for Last Year Follows