Yoho Company Reported the Following Financial Numbers for One of Its

question 36

Multiple Choice

Yoho Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:

• A) $150,450.
• B) $196,750.
• C) $150,500.
• D) $133,000.
• E) $100,300.

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Definitions:

Raven's Matrices

A nonverbal group test typically used to measure abstract reasoning and regarded as a nonverbal estimate of fluid intelligence.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a tool for assessing the intelligence and cognitive ability of adults.

WISC-IV

The Wechsler Intelligence Scale for Children-Fourth Edition, a tool used to assess the intellectual ability of children between the ages of 6 and 16.

Raven's Progressive Matrices

A nonverbal group test typically used to assess abstract reasoning and fluid intelligence.