The following information is from Bluff Run Golf Courses. The company runs two courses and the July income statement for each course is shown below. What is the residual income (RI) for the Blue course? Round to 2 decimal places Blue course Black Course Total Revenue $73,500 $95,000 Total expenses $62,200 $79,100 Total assets (investment base) $94,200 106,000 Cost of capital 11% 13% Group of answer choices $10,362 $938 $13,780 $2,120
The following information is from Bluff Run Golf Courses. The company runs two courses and the July income statement for each course is shown below. What is the residual income (RI) for the Blue course? Round to 2 decimal places Blue course Black Course Total Revenue $73,500 $95,000 Total expenses $62,200 $79,100 Total assets (investment base) $94,200 106,000 Cost of capital 11% 13% Group of answer choices $10,362 $938 $13,780 $2,120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is from Bluff Run Golf Courses. The company runs two courses and the July income statement for each course is shown below. What is the residual income (RI) for the Blue course? Round to 2 decimal places
| Blue course | Black Course | |
| Total Revenue | $73,500 | $95,000 |
| Total expenses | $62,200 | $79,100 |
| Total assets (investment base) | $94,200 | 106,000 |
| Cost of capital | 11% | 13% |
Group of answer choices
$10,362
$938
$13,780
$2,120
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