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

Question

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

Quizplus · Accepted Answer

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

Sanford Company Reported the Following Information for the Current Year