Q1 A company has total assets of $1,200,000, a required rate of return of 12%, and operating income for the year was $345,000.What is the company's residual income?

Select one:

a.$201,000

b.$144,000

c.$303,600

d.$345,000

Q2 In a recent electrical storm, the Frizzle Company lost a portion of its accounting records.The IT manager at Frizzle was able to retrieve the following information:

Sales$2,500,000Net operating income$1,500,000Total AssetsReturn on Investment0.25Residual income

What is the value of the total assets for the Frizzle Company?

Select one:

a.$625,000

b.$1,000,000

c.$6,000,000

d.$375,000

Q3 In a recent electrical storm, the Frizzle Company lost a portion of its accounting records.The IT manager at Frizzle was able to retrieve the following information:

Sales$2,500,000Net operating income$1,500,000Total AssetsReturn on Investment0.25Residual income

What is the residual income for the Frizzle Company if the firm's cost of capital is 15%?

Select one:

a.$600,000

b.$1,433,750

c.$1,350,000

d.$1,406,250

Q4 JRT Enterprises has long-term debt with a market value of $2,000,000 and equity with a market value of $3,000,000.For the company, the cost of debt is 15%, while the cost of equity is 10%.The company's total assets are $800,000.During 2011, JRT reported after-tax profit of $550,000.Information related to the company's debt on its statement of financial position is shown below:

LiabilitiesAccounts payable$50,000Current portion of long-term loan$150,000Total current liabilities$200,000Long-term debtBank loan$1,850,000Total long-term debt$1,850,000

Total liabilities$2,050,000

What is the EVA for JRT Enterprises?

Select one:

a.$460,000

b.$490,000

c.$478,000

d.$472,000