A. The following information is available for Arnett Co.:

Current assets $100,000 Current liabilities $75,000

Property, plant and Long-term liabilities 100,000

equipment 150,000 Stockholders' equity 125,000

Other assets 50,000 Total liabilities and

Total assets $300,000 stockholders' equity $300,000

Invested capital is defined as total assets. Net operating income is $60,000. What is ROI?

B Hasty Corp. uses an imputed interest rate of 12% in the calculation of residual income. Division C, which is part of Hasty, had invested capital of $800,000 and an ROI of 15%. On the basis of this information, C's residual income (RI) was:

	$(24,000).
	$-0-.
	$24,000.
	$120,000. 96,000