Bella Vista Service Co Based on the Above Information,which One of the Following Statements

question 51

Multiple Choice

Bella Vista Service Co.is a computer service center.For the month of May,Bella Vista Service Co.had the following operating statistics: (CMA adapted)
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 450,000 \\\hline \text { Operating income } & 25,000 \\\hline \text { Net profit after taxes } & 8,000 \\\hline \text { Total assets } & 500,000 \\\hline \text { Stockholder's equity } & 200,000 \\\hline \text { Cost of capital } & 6 \% \\\hline\end{array}$$ Based on the above information,which one of the following statements is correct?

• A) Bella Vista Service Co.has a return on investment of 4%.
• B) Bella Vista Service Co.has a residual income of $(2,000).
• C) Bella Vista Service Co.has a return on investment of 5.6%.
• D) Bella Vista Service Co.has a residual income of $(22,000).

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Definitions:

Trophic Level

The position an organism occupies in a food chain or food web, categorized by how the organism obtains energy and nutrients, starting with producers at the base and various levels of consumers above.

Producers

Organisms in an ecosystem that convert energy from the sun or chemicals into food through photosynthesis or chemosynthesis.