Shields Company Reported the Following Information for 2012 What Was the Company's Residual Income for 2012

question 68

Essay

Shields Company reported the following information for 2012: $\begin{array}{lr}\text { Sales } & \$ 800,000 \\\text { Average Operating Assets } & \$ 400,000 \\\text { Desired ROI } & 8 \% \\\text { Operating Income } & \$ 50,000\end{array}$
What was the company's residual income for 2012?

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Definitions:

Historical Comparisons

Analyses that look at past events or periods as a way to understand current conditions or predict future trends.

Benchmark Performance

A standard or point of reference against which the performance of other entities can be measured.

Problem Situation

A scenario in which the current state of affairs is unsatisfactory or presents challenges that require solutions.

Corrective Action

Measures taken to rectify a problem, error, or deviation from set standards or expectations.