do the answers from 5 to 8 question

Stanford company is a private and its management accountant department is planning to analyze its financial performance of its investment centre. They collected some information on the financial statement and decided to calculate the residual income of the company to get a better picture of the profit being generated by the company. Information for analysis is provided in the table below:

ROI using the two component method

[DuPont Analysis]

$

Current Assets

:

Cash

16,500

A/C Receivable

12,500

Inventory

30,000

Current Liabilities

34,200

Long Term Li

abilities

124,300

Equity

212,000

Equipment

120,000

Property

110.000

Plant

?

Accumulated Depreciation Plant

28,500

Tax rate

30%

COGS

59,500

Operating Expenses

Last Year Operating Assets

Sales

Interest on debt

Government Bond rate

Market index @Jan 2018

Market index @Dec 31, 2018

Beta

34,200

285,000

116,200

7.5%

4%

27680

28960

1.7

Hint : Long term assets are always sated at Net Book Value

All long term liabilities are debt

Important :All working

s

should be shown.

5. Calculate return on equity ( re )

6. Calculate Residual Income.

7. How does the residual income differ from Accounting income

[EBIT]?

8. Why do we use Residual income instead of Net Income? [Hint: why

we disregard tax and interest rate in this measure]

Question Sunfed conuty is a private and in management content department planning to analyze financial performance of investment. They collected me information se filmelde calculate the residual income of the company gets beter picture of the pruit beg penerated by the company is provided in the table below 15 LA Cab NC Rei Inventory Camps Long Term Lilit Equity Equipment Property Paul Armand Depreciate Plan 134 21 110 2500 Tarte COGS Op 14.00 1194 La Yer Open Sales Deprest der Go Rond rate Marketeran 2015 Marketindes hex 11.2018 20 Tam teman www Allgem IALE REQUIRED 1. Calculate Total de companying the counting formule 2. Cakulete pro original cost of the wale of plan te plant and calculate the netbook Cakeutate epcresting 4. Calculate EBIT inexpen 5. Cele tunity) Calculate esitam Bbw does the residual income difference income TERIT & Why do we wel investead of Net Income why weddarsten