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Company X's Residual Income

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The following information is available on Company X:

Sales 99,000
Net operating income 3,700
Average operating assets 33,000
Stockholders' equity 23,000
Minimum required rate of return 10%

Company X's residual income would be:

6,200
1,400
370
400

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Solution Summary

This provides the steps to calculate the Company X's residual income.

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