Question
Fon Company has the following operating data for the past year: Sales $714,000 Variable Cost $250,000 Fixed Cost $100,000 Minimum required rate of return 16%
Fon Company has the following operating data for the past year:
| Sales | $714,000 |
| Variable Cost | $250,000 |
| Fixed Cost | $100,000 |
| Minimum required rate of return | 16% |
Balance Sheet Data for beginning and end of year:
| Assets | Beginning | Ending |
| Cash | $5,000 | $5,000 |
| Accounts Receivable | $35,000 | $40,000 |
| Inventory | $90,000 | $95,000 |
| Net PP&E | $100,000 | $115,000 |
| Land (held for future use) | $40,000 | $40,000 |
| Investments in affiliates | $5,000 | $0 |
| Total Assets | $275,000 | $295,000 |
| Liabilities & SH Equity | ||
| Short Term Debt | $22,000 | $27,000 |
| Long Term Debt | $116,000 | $117,000 |
| Stockholder's Equity | $137,000 | $151,000 |
| Total Liabilities and SH Equity | $275,000 | $295,000 |
Q) Fon Company's residual income for the past year is closest to:
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The Politics Of Internal Auditing
Authors: Dr. Larry Rittenberg, Patty Miller
1st Edition
0894139053, 978-0894139055
