Abbe Company Reported the Following Financial Numbers for One of Its

question 22

Multiple Choice

Abbe Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:

• A) $203,000.
• B) $193,000.
• C) $150,500.
• D) $60,300.
• E) $197,500.

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Definitions:

Biological Transmission

The process of passing biological traits or diseases from one generation to the next through genetic information.

Genes

Units of heredity made up of DNA, located in chromosomes, that determine specific characteristics by coding for proteins.

Traits

Characteristic patterns of thoughts, feelings, or behaviors that are relatively stable over time and across situations.

Heredity

The transmission of genetic characteristics from parents to offspring through their genes.