Payne Company Reported the Following Information for the Current Year

question 99

Multiple Choice

Payne Company reported the following information for the current year: $$\begin{array} { l l} \text { Sales } & \$ 1,600,000 \\\text { Average Operating Assets } & \$ 500,000 \\\text { Desired ROI } & 14 \% \\\text { Net Income } & \$ 85,000\end{array}$$ The company's residual income was:

• A) $(15,000).
• B) $14,000.
• C) $15,000.
• D) $24,000.

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Definitions:

Specific Gravity

The ratio of the density of a substance to the density of a reference substance, typically water, used to identify materials or test fluid conditions.

Tetrahedron

A polyhedron with four faces, typically each an equilateral triangle, making up one of the simplest geometrical shapes in three dimensions.

Octahedron

A polyhedron with eight faces.

Dodecahedron

A polyhedron with twelve flat faces, each face being a pentagon.