$$\text { Reference: } 12 - 10$$ Harstin Corporation Has Provided the Following Data

question 17

True/False

$$\text { Reference: } 12 - 10$$ Harstin Corporation has provided the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-ROI and residual income can be used as performance measures.

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Definitions:

Banker's Acceptance

A short-term debt instrument issued by a company that is guaranteed by a commercial bank, used in international trade.

International

Relating to, involving, or encompassing several countries or spanning across national boundaries.

Specified Amount

A precise sum or quantity that has been determined and stated in a contract or agreement.

Negotiable

Negotiable refers to something that can be discussed and changed through negotiation, especially in the context of financial instruments that can be transferred or endorsed to a new owner.