-What Is Company B's Residual Income?
A) $9,000

question 176

Multiple Choice

$\begin{array}{l}\text { The following information is available on Company B: }\\\begin{array} { | l | r | } \hline \text { Sales } & \$ 950,000 \\\hline \text { Operating Income } & \$ 56,000 \\\hline \text { Shareholders' Equity } & \$ 100,000 \\\hline \text { Average Operating Assets } & \$ 190,000 \\\hline \text { Minimum Required Rate of Return } & 20 \% \\\hline\end{array}\end{array}$
-What is Company B's residual income?

• A) $9,000.
• B) $18,000.
• C) $24,000.
• D) $45,000.