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). O 1 2 3 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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).
O 1
O 2
O 3
4
Transcribed Image Text: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). O 1 O 2 O 3 4
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