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

question 138

Multiple Choice

Dynamic Corporation provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Minimum acceptable operating income } & \$ 556,600 \\\hline \text { Average total assets } & \$ 2,600,000 \\\hline \text { Operating income } & \$ 712,000 \\\hline \text { Return on investment } & 27 \% \\\hline \text { Net sales } & \$ 900,000 \\\hline\end{array}$$ Calculate the residual income of Dynamic Corporation.

• A) $2,043,400
• B) $343,400
• C) $155,400
• D) $4,255,569

Interpret the implications of positive and negative cash flows in various sections of the statement of cash flows.

Identify transactions affecting the financing activities section of the statement of cash flows.

Assess the impact of changes in accounts receivable, payable, and inventory on cash flows.

Understand the importance of non-cash transactions in the statement of cash flows.

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