Sousa Corporation Provides the Following Financial Information Calculate the Residual Income of Sousa Corporation

question 105

Multiple Choice

Sousa Corporation provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 556,600 \\\hline \text { Average total assets } & \$ 2,600,000 \\\hline \text { Operating income } & \$ 708,000 \\\hline \text { Return on investment } & 27 \% \\\hline \text { Net sales } & \$ 900,000 \\\hline\end{array}$$ Calculate the residual income of Sousa Corporation.

• A) $2,043,400
• B) $343,400
• C) $151,400
• D) $412,274

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Definitions:

Owned

Often colloquially used to mean dominantly defeated or embarrassed, typically in a competitive situation or argument.

Fewer

A comparative term used to indicate a smaller number of items, people, or entities in one group or category compared to another.

Diets

Regulated eating plans or patterns of food consumption, often aimed at achieving a specific health goal.

Plantations

Large farms in the Southern United States that mainly grew cash crops like tobacco, cotton, and sugar, often relying on slave labor before the Civil War.