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    Residual Income of a Company

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    A company reported the following information for FY 2004:

    Sales $500,000
    Average operating Assets $300,000
    Desired ROI 10%
    Net Income $45,000

    Based on this information, calculate the company's residual income for 2004.

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    https://brainmass.com/business/accounting/residual-income-company-157735

    Solution Preview

    A company reported the following information for FY 2004:

    Sales $500,000
    Average operating Assets $300,000
    Desired ROI 10%
    Net Income ...

    Solution Summary

    This solution shows step-by-step calculations to determine the company's residual income using the net income, desired ROI and average operating assets.

    $2.19

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