Compute the Average Assets Invested for the Hi Ho Investment

question 5

Multiple Choice

Compute the average assets invested for the Hi Ho investment center as shown below. $\begin{array}{lr}&\text { Hi Ho Subsidiary }\\\text { Total sales } & \$ 20,000 \\\text { Operating income } & \$ 5,000 \\\text { Beginning assets invested } & \$ 14,000 \\\text { Ending assets invested } & \$ 14,600 \\\text { Average assets invested } & \$ ? \\\text { Desired ROI } & 25 \%\\\text { Residual income }&\$?\end{array}$

• A) $14,400
• B) $14,450
• C) $14,350
• D) $14,300

Understand the principle of discounted cash flows.

Recognize the impact of time on the value of money.

Understand the basic concepts and functions of inventory management.

Differentiate between various inventory systems and models, including P and Q systems.

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Definitions:

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