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

question 122

Multiple Choice

Dynamic Corporation provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 520,000 \\\hline \text { Average total assets } & \$ 2,000,000 \\\hline \text { Operating income } & \$ 705,000 \\\hline \text { Return on investment } & 35 \% \\\hline \text { Net sales } & \$ 825,000 \\\hline\end{array}$$ Calculate the residual income of Dynamic Corporation.

• A)$1,480,000
• B)$305,000
• C)$185,000
• D)$6,521,250

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Definitions:

Opponents

Individuals or groups who oppose or compete against another in a conflict, competition, or debate.

Driving Forces

Factors or elements that propel or direct certain actions, changes, or developments within an organization or system.

Denial

A defense mechanism where an individual refuses to accept reality or facts, thereby avoiding dealing with painful feelings or events.

Adaptation

The process through which individuals, species, or organizations adjust and change in response to new conditions or challenges.