The following information is available for Company X:

Sales	$	60,000
Operating expenses	$	57,000
Operating assets	$	24,000
Stockholder's equity	$	15,000
Cost of capital		8%

What is Company X's residual income? (Ignore Tax)

	$1,200.
	$1,800.
	$1,080.
	$1,920.

The following information is available for Company X:

Sales	$	65,000
Operating expenses	$	60,450
Operating assets	$	35,000
Stockholder's equity	$	16,250
Cost of capital		5.50%

What is Company X's return on investment (ROI)? (Ignore Tax)

	5.50%.
	7.00%.
	28.00%.
	13.00%.

The following information was presented by Delta Manufacturing Company for an asset purchased the previous year.

Original cost of the asset	$	90,000
Useful life of the asset		10	Years
Annual operating profit, including depreciation	$	23,400
Salvage value	$	-0-

What is the return on investment (ROI) assuming Delta (a) uses the straight-line method for depreciation and (b) beginning-of-year net book values to compute ROI? (Round your final answer to 2 decimal places.)

	26.00%.
	36.00%.
	28.89%.
	17.78%.