A. A company reported income of $50,000 in 2018. At the beginning of 2018 they had assets of $500,000 at the end of the year they had assets of $600,000. In addition, they had sales of $1,000,000 in 2018. If their cost of capital is 8% (a) what is their return on investment (ROI), (b) what is their residual income?

a. 10,000

b. 6,000

c. 10%

d. 9%

B. What is their residual income?

a. 10,000

b. 6,000

c. 10%

d. 9%