Reference: 12-05
the Holmes Division Recorded Operating Data as Follows

question 66

Multiple Choice

Reference: 12-05
The Holmes Division recorded operating data as follows for the past year: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 200,000 \\\hline \text { Net operating income } & 25,000 \\\hline \text { Average operating assets } & 100,000 \\\hline \text { Stockholders' equity } & 80,000 \\\hline \text { Residual income } & 13,000 \\\hline\end{array}$$
-The net operating income in Year 1 was?

• A)$140,000.
• B)$150,000.
• C)$135,000.
• D)$90,000.

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Definitions:

PBGC

The Pension Benefit Guaranty Corporation (PBGC) is a U.S. government agency that protects the retirement incomes of American workers in private-sector defined benefit pension plans.

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Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life.

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Insurance that provides a portion of an employee’s salary if they are temporarily unable to work due to injury, illness, or childbirth.