contestada

Chicks Corporation had $1,100,000 in invested assets, sales of $1,210,000, income from operations amounting to $302,500, and a desired minimum return of 15%.

The residual income for Chicks is

Respuesta :

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Answer:

The answer is  $137500

Explanation:

Solution

Recall that:

Chicks corporation had invested assets of =$1,100,000

Sales of = $1,210,000,

Income from operations resulting to = $302,500

Desired minimum return = 15%

Chicks residual income is =?

Now,

Particulars                         Amount

Net Income                        302500

Less: Minimum Return

        (1100000 x 15%)            165000

Residual Income                 137500

Therefore the residual income for chicks is $137500

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