CROSSLEY COMPANY
			BALANCE SHEET
			AT DECEMBER 31
			2018		2017
ASSETS
Cash					1625000
Accounts receivable					3069360
Inventory
Raw materials				275000
Finished goods				481600	756600
Property, plant and equipment, net					2939555
Total Assets					8390515
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts payable					2600000
Commissions payable					187425
Note payable					1500000
Common stock, no par					2450000
Retained earnings					1653090
Total Liabilities and Stockholders Equity					8390515

Presented is Crossleys projected balance sheet at 12/31/17. Prepare a budgeted balance sheet at 12/31/18 next to it, then answer the following questions in the space below your balance sheets. Label your answers, but the amounts themselves should be calculated by formulas.

a. What is the budgeted return on investment (round your answer to the nearest one percent)?

b. the company has established a minimum required rate of return of 22% for Crossley, what is budgeted residual income (round your answer to the nearest dollar)?

c. If the CEO of Crossley has set a target ROI of 28%, how many units would the company have to sell for the year (round your answer to the nearest whole unit)?