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

question 11

True/False

$$\text { Reference: } 12 - 10$$ Harstin Corporation has provided the following data: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 625,000 \\\hline \text { Gross margin } & 70,000 \\\hline \text { Net operating income } & 50,000 \\\hline \text { Stockholders' equity } & 90,000 \\\hline \text { Average operating assets } & 250,000 \\\hline \text { Residual income } & 20,000 \\\hline\end{array}$$
-In performing return on investment calculations, it is safe to assume that total assets from the balance sheet may be used in all calculations.

---

Definitions:

Government Securities

Financial instruments issued by a government to raise funds from investors, typically featuring lower risk and fixed interest payments.

Discount Rate

The interest rate charged by central banks to commercial banks for short-term loans.

Expansionary policy

Economic policies aimed at increasing the supply of money or reducing taxation to stimulate economic growth, typically undertaken during a recession.

Contractionary Policy

Economic policies intended to reduce spending and slow down inflation, often through increased interest rates or reduced government spending.