The Clydesdale Company Has Sales of $4,500,000

question 31

Multiple Choice

The Clydesdale Company has sales of $4,500,000. It also has invested assets of $2,000,000 and operating expenses of $3,600,000. The company has established a minimum rate of return of 7%. What is Clydesdale Company's residual income?

• A) $252,000
• B) $900,000
• C) $1,400,000
• D) $760,000

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Definitions:

Strong Arguments

Arguments where if the premises are true, the conclusion is likely to be true, showing a high degree of logical support.

Conclusion

The final statement in a logical argument that follows from the premises.

Importance

The state or fact of being of great significance or value.

Implicit Premise

A premise that is assumed by an argument but is not stated.