The Following Selected Data Pertain to the Belt Division of Allen

question 131

Multiple Choice

The following selected data pertain to the belt division of Allen Corp. for last year:

$\begin{array} { | l | r | } \hline \text { Sales } & \$ 500,000 \\\hline \text { Average Operating Assets } & \$ 200,000 \\\hline \text { Operating Income } & \$ 80,000 \\\hline \text { Turnover } & 2.5 \\\hline \text { Minimum Required Return } & 20 \% \\\hline\end{array}$


-What was the residual income?

• A) $40,000.
• B) $80,000.
• C) $100,000.
• D) $420,000.

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Definitions:

Epithelial

Pertaining to the epithelium, a layer of cells covering the body surfaces, lining body cavities and forming many glands.

Connective

Often refers to connective tissue in biology, which supports, binds together, or separates other tissues or organs of the body.

Mucus

A slippery secretion produced by, and covering, mucous membranes primarily in the respiratory, digestive, and reproductive systems, aiding in protection and lubrication.

Muscle

Muscle is a tissue in animals that contracts to produce movement, consisting of smooth, skeletal, and cardiac types.