A company’s average operating assets are P220,000 and its net operating income is P44,000. The company invested in new project, increasing average assets to P250,000 and increasing net operating income to P49,550. What is the project’s residual income if the required rat of return is 20%?
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1. A company’s average operating assets are P220,000 and its net operating income is P44,000. The company invested in new project, increasing average assets to P250,000 and increasing net operating income to P49,550. What is the project’s residual income if the required rat of return is 20%?
2. Gurey Corp. uses an imputed interest rate of 13% in the calculation of residual income. Division Tiffey, which is part of Gurey Corp., had invested capital of P1,200,000 and an
3. Helo Company has provided the following data: Sales, P5,000,000; Interest expense, P30,000; Total assets, beginning of the year, P185,000; Total assets, end of the year, P215,000; Return on assets, 15.5%; Tax rate, 30%. What is the net income of Helo Co.?
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