Homework Help is Here – Start Your Trial Now!
Business
Accounting
ABC Company is a service center with the following operating data:             Sales                                 P 450,000             Operating Income                 25,000             Net Income after tax               8,000             Average assets invested      500,000             Shareholders’ equity           200,000             Minimum required ROI              6%        Based on the above information, which one of the following statements is correct? ABC Company has a             1.  Return on investment of 4%             2.  Residual income of (P5,000)             3.  Return on investment of 1.6%             4.  Residual income of (P22,000). Group of answer choices 1 2 3 4

ABC Company is a service center with the following operating data:             Sales                                 P 450,000             Operating Income                 25,000             Net Income after tax               8,000             Average assets invested      500,000             Shareholders’ equity           200,000             Minimum required ROI              6%        Based on the above information, which one of the following statements is correct? ABC Company has a             1.  Return on investment of 4%             2.  Residual income of (P5,000)             3.  Return on investment of 1.6%             4.  Residual income of (P22,000). Group of answer choices 1 2 3 4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

ABC Company is a service center with the following operating data:

            Sales                                 P 450,000

            Operating Income                 25,000

            Net Income after tax               8,000

            Average assets invested      500,000

            Shareholders’ equity           200,000

            Minimum required ROI              6%

       Based on the above information, which one of the following statements is correct? ABC Company has a

            1.  Return on investment of 4%

            2.  Residual income of (P5,000)

            3.  Return on investment of 1.6%

            4.  Residual income of (P22,000).

Group of answer choices
1
2
3
4
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS