SlideShare une entreprise Scribd logo
1  sur  2
The following information is available for Company X:
What is Company X's residual income? (Ignore Tax)
The following information is available for Company X:
What is Company X's return on investment (ROI)? (Ignore Tax)
The following information was presented by Delta Manufacturing Company for an asset
purchased the previous year.
What is the return on investment (ROI) assuming Delta (a) uses the straight-line method for
depreciation and (b) beginning-of-year net book values to compute ROI? (Round your final
answer to 2 decimal places.)
Sales $ 60,000
Operating expenses $ 57,000
Operating assets $ 24,000
Stockholder's equity $ 15,000
Cost of capital 8%
Solution
1)
net income = 60000 - 57000 = 3000
minimum reuired = 60000 * 0.08 =4800
residual income = 4800 - 3000 = 1800
2)
net income = 65000 - 60450 = 4550
ROI = 4550/35000 = 13%
3)
ROI = 23400/90000 = 26%

Contenu connexe

Similaire à The following information is available for Company X- What is Compan.docx

ACC205 Discussion QuestionsAccounting Equation As you hav.docx
ACC205 Discussion QuestionsAccounting Equation As you hav.docxACC205 Discussion QuestionsAccounting Equation As you hav.docx
ACC205 Discussion QuestionsAccounting Equation As you hav.docx
annetnash8266
 
Week five exercise_assignment_b
Week five exercise_assignment_bWeek five exercise_assignment_b
Week five exercise_assignment_b
Hafeez Abdullah
 
Part IIThe company has the following capital structureAccount.docx
Part IIThe company has the following capital structureAccount.docxPart IIThe company has the following capital structureAccount.docx
Part IIThe company has the following capital structureAccount.docx
herbertwilson5999
 
Discuss at least two ways that you can help to control what inform.docx
Discuss at least two ways that you can help to control what inform.docxDiscuss at least two ways that you can help to control what inform.docx
Discuss at least two ways that you can help to control what inform.docx
duketjoy27252
 
Brief Exercise 18-11 (Part.docx
Brief Exercise 18-11 (Part.docxBrief Exercise 18-11 (Part.docx
Brief Exercise 18-11 (Part.docx
chestnutkaitlyn
 
Chapter 18, Question 1- The following is the financial statement o.docx
Chapter 18, Question 1- The following is the financial statement o.docxChapter 18, Question 1- The following is the financial statement o.docx
Chapter 18, Question 1- The following is the financial statement o.docx
DinahShipman862
 
Top of Form 1.Award 8.33 pointsPringle Company distribu.docx
Top of Form 1.Award 8.33 pointsPringle Company distribu.docxTop of Form 1.Award 8.33 pointsPringle Company distribu.docx
Top of Form 1.Award 8.33 pointsPringle Company distribu.docx
turveycharlyn
 
Lecture 3 (chapter 6) accounting for finance
Lecture 3 (chapter 6) accounting for financeLecture 3 (chapter 6) accounting for finance
Lecture 3 (chapter 6) accounting for finance
Hareindranath Sivam
 

Similaire à The following information is available for Company X- What is Compan.docx (14)

Brewer chapter 10
Brewer chapter 10Brewer chapter 10
Brewer chapter 10
 
ACC205 Discussion QuestionsAccounting Equation As you hav.docx
ACC205 Discussion QuestionsAccounting Equation As you hav.docxACC205 Discussion QuestionsAccounting Equation As you hav.docx
ACC205 Discussion QuestionsAccounting Equation As you hav.docx
 
Account asst
Account asstAccount asst
Account asst
 
Ratio analysis -_numericals
Ratio analysis -_numericalsRatio analysis -_numericals
Ratio analysis -_numericals
 
Week five exercise_assignment_b
Week five exercise_assignment_bWeek five exercise_assignment_b
Week five exercise_assignment_b
 
feasibility study sec 8.pptx power point
feasibility study sec 8.pptx power pointfeasibility study sec 8.pptx power point
feasibility study sec 8.pptx power point
 
Risk Analysis and Project Evaluation/Abshor.Marantika/Gita Mutiara Ovelia/3-3
Risk Analysis and Project Evaluation/Abshor.Marantika/Gita Mutiara Ovelia/3-3Risk Analysis and Project Evaluation/Abshor.Marantika/Gita Mutiara Ovelia/3-3
Risk Analysis and Project Evaluation/Abshor.Marantika/Gita Mutiara Ovelia/3-3
 
Part IIThe company has the following capital structureAccount.docx
Part IIThe company has the following capital structureAccount.docxPart IIThe company has the following capital structureAccount.docx
Part IIThe company has the following capital structureAccount.docx
 
Discuss at least two ways that you can help to control what inform.docx
Discuss at least two ways that you can help to control what inform.docxDiscuss at least two ways that you can help to control what inform.docx
Discuss at least two ways that you can help to control what inform.docx
 
Brief Exercise 18-11 (Part.docx
Brief Exercise 18-11 (Part.docxBrief Exercise 18-11 (Part.docx
Brief Exercise 18-11 (Part.docx
 
Chapter 18, Question 1- The following is the financial statement o.docx
Chapter 18, Question 1- The following is the financial statement o.docxChapter 18, Question 1- The following is the financial statement o.docx
Chapter 18, Question 1- The following is the financial statement o.docx
 
Top of Form 1.Award 8.33 pointsPringle Company distribu.docx
Top of Form 1.Award 8.33 pointsPringle Company distribu.docxTop of Form 1.Award 8.33 pointsPringle Company distribu.docx
Top of Form 1.Award 8.33 pointsPringle Company distribu.docx
 
Lecture 3 (chapter 6) accounting for finance
Lecture 3 (chapter 6) accounting for financeLecture 3 (chapter 6) accounting for finance
Lecture 3 (chapter 6) accounting for finance
 
Chapter 5 - Cash flows - handout.pptx
Chapter 5 - Cash flows - handout.pptxChapter 5 - Cash flows - handout.pptx
Chapter 5 - Cash flows - handout.pptx
 

Plus de delicecogupdyke

You are the CFO of a large academic medical center and your organizati (1).docx
You are the CFO of a large academic medical center and your organizati (1).docxYou are the CFO of a large academic medical center and your organizati (1).docx
You are the CFO of a large academic medical center and your organizati (1).docx
delicecogupdyke
 
Write the following report that can be a powerpoint presentation-The g.docx
Write the following report that can be a powerpoint presentation-The g.docxWrite the following report that can be a powerpoint presentation-The g.docx
Write the following report that can be a powerpoint presentation-The g.docx
delicecogupdyke
 
Write the definition of the linkedListKeepLast function- (Please write.docx
Write the definition of the linkedListKeepLast function- (Please write.docxWrite the definition of the linkedListKeepLast function- (Please write.docx
Write the definition of the linkedListKeepLast function- (Please write.docx
delicecogupdyke
 

Plus de delicecogupdyke (20)

You have been learning about Urie Bronfenbrenner this week- Let's mak.docx
You have been learning about Urie Bronfenbrenner this week-  Let's mak.docxYou have been learning about Urie Bronfenbrenner this week-  Let's mak.docx
You have been learning about Urie Bronfenbrenner this week- Let's mak.docx
 
You encounter a flat green organism growing on a rock with no obvious.docx
You encounter a flat green organism growing on a rock with no obvious.docxYou encounter a flat green organism growing on a rock with no obvious.docx
You encounter a flat green organism growing on a rock with no obvious.docx
 
You are the PR specialist for St- John's Ambulance- The organization w.docx
You are the PR specialist for St- John's Ambulance- The organization w.docxYou are the PR specialist for St- John's Ambulance- The organization w.docx
You are the PR specialist for St- John's Ambulance- The organization w.docx
 
You are the CFO of a large academic medical center and your organizati (1).docx
You are the CFO of a large academic medical center and your organizati (1).docxYou are the CFO of a large academic medical center and your organizati (1).docx
You are the CFO of a large academic medical center and your organizati (1).docx
 
You are on a field trip with your bio class- Your water sample from a.docx
You are on a field trip with your bio class- Your water sample from a.docxYou are on a field trip with your bio class- Your water sample from a.docx
You are on a field trip with your bio class- Your water sample from a.docx
 
You are fortunate to travel to a tropical forest- You find an insect o.docx
You are fortunate to travel to a tropical forest- You find an insect o.docxYou are fortunate to travel to a tropical forest- You find an insect o.docx
You are fortunate to travel to a tropical forest- You find an insect o.docx
 
You are a Government employee working in the Human Resources departmen.docx
You are a Government employee working in the Human Resources departmen.docxYou are a Government employee working in the Human Resources departmen.docx
You are a Government employee working in the Human Resources departmen.docx
 
You are a genetic cownselar- A single mother cnmes to vou- where both.docx
You are a genetic cownselar- A single mother cnmes to vou- where both.docxYou are a genetic cownselar- A single mother cnmes to vou- where both.docx
You are a genetic cownselar- A single mother cnmes to vou- where both.docx
 
Write the following report that can be a powerpoint presentation-The g.docx
Write the following report that can be a powerpoint presentation-The g.docxWrite the following report that can be a powerpoint presentation-The g.docx
Write the following report that can be a powerpoint presentation-The g.docx
 
Write two functions using the Front and Back Linear Search algorithms-.docx
Write two functions using the Front and Back Linear Search algorithms-.docxWrite two functions using the Front and Back Linear Search algorithms-.docx
Write two functions using the Front and Back Linear Search algorithms-.docx
 
xpected to grow geometrically- (Assume that interactions ith other spe.docx
xpected to grow geometrically- (Assume that interactions ith other spe.docxxpected to grow geometrically- (Assume that interactions ith other spe.docx
xpected to grow geometrically- (Assume that interactions ith other spe.docx
 
Write the pseudocode for Python for the following- from Celsius to Fah.docx
Write the pseudocode for Python for the following- from Celsius to Fah.docxWrite the pseudocode for Python for the following- from Celsius to Fah.docx
Write the pseudocode for Python for the following- from Celsius to Fah.docx
 
Write the definition of the linkedListKeepLast function- (Please write.docx
Write the definition of the linkedListKeepLast function- (Please write.docxWrite the definition of the linkedListKeepLast function- (Please write.docx
Write the definition of the linkedListKeepLast function- (Please write.docx
 
Write SQL commands that convert the Database schema to Tables with the.docx
Write SQL commands that convert the Database schema to Tables with the.docxWrite SQL commands that convert the Database schema to Tables with the.docx
Write SQL commands that convert the Database schema to Tables with the.docx
 
write the adjusting entries for following Given Data-.docx
write the adjusting entries for following    Given Data-.docxwrite the adjusting entries for following    Given Data-.docx
write the adjusting entries for following Given Data-.docx
 
Write python code to collect 1000 posts from Twitter- or Facebook- or.docx
Write python code to collect 1000 posts from Twitter- or Facebook- or.docxWrite python code to collect 1000 posts from Twitter- or Facebook- or.docx
Write python code to collect 1000 posts from Twitter- or Facebook- or.docx
 
write one to two paragraphs on the significance about Jati Explain how.docx
write one to two paragraphs on the significance about Jati Explain how.docxwrite one to two paragraphs on the significance about Jati Explain how.docx
write one to two paragraphs on the significance about Jati Explain how.docx
 
Write in C++ Calculate the mean of a vector of floating point numbers.docx
Write in C++ Calculate the mean of a vector of floating point numbers.docxWrite in C++ Calculate the mean of a vector of floating point numbers.docx
Write in C++ Calculate the mean of a vector of floating point numbers.docx
 
Write down the code that will count the number of clicks for a LIKE bu.docx
Write down the code that will count the number of clicks for a LIKE bu.docxWrite down the code that will count the number of clicks for a LIKE bu.docx
Write down the code that will count the number of clicks for a LIKE bu.docx
 
Write declarations for variables p1 and p2 whose values will be addres.docx
Write declarations for variables p1 and p2 whose values will be addres.docxWrite declarations for variables p1 and p2 whose values will be addres.docx
Write declarations for variables p1 and p2 whose values will be addres.docx
 

Dernier

Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
negromaestrong
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
AnaAcapella
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
ZurliaSoop
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
kauryashika82
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 

Dernier (20)

Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
 
Spatium Project Simulation student brief
Spatium Project Simulation student briefSpatium Project Simulation student brief
Spatium Project Simulation student brief
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
Micro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdfMicro-Scholarship, What it is, How can it help me.pdf
Micro-Scholarship, What it is, How can it help me.pdf
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17  How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17  How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
 
Dyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptxDyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptx
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
 
Holdier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdfHoldier Curriculum Vitae (April 2024).pdf
Holdier Curriculum Vitae (April 2024).pdf
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptxBasic Civil Engineering first year Notes- Chapter 4 Building.pptx
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 

The following information is available for Company X- What is Compan.docx

  • 1. The following information is available for Company X: What is Company X's residual income? (Ignore Tax) The following information is available for Company X: What is Company X's return on investment (ROI)? (Ignore Tax) The following information was presented by Delta Manufacturing Company for an asset purchased the previous year. What is the return on investment (ROI) assuming Delta (a) uses the straight-line method for depreciation and (b) beginning-of-year net book values to compute ROI? (Round your final answer to 2 decimal places.) Sales $ 60,000 Operating expenses $ 57,000 Operating assets $ 24,000 Stockholder's equity $ 15,000 Cost of capital 8% Solution 1) net income = 60000 - 57000 = 3000 minimum reuired = 60000 * 0.08 =4800 residual income = 4800 - 3000 = 1800
  • 2. 2) net income = 65000 - 60450 = 4550 ROI = 4550/35000 = 13% 3) ROI = 23400/90000 = 26%