What is the amount of average invested assets

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Reference no: EM13750071

1. Howard has an ROI of 26% based on revenues of $408,000. The investment turnover is 2. What is the residual income if the cost of capital is 15%?

a) $12,440 negative

b) $61,200

c) $22,440

d) $106,080

2. Crawford Corp. has an ROI of 25% and a residual income of $10,500. If operating income equals $50,000, what is the amount of average invested assets?

a) $262,500

b) $42,000

c) $1,250,000

d) $200,000

Reference no: EM13750071

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