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The following information is available for Vic Company: Operating income Sales Beginning operating assets Ending operating assets Required: (Round up all answers to the

 

The following information is available for Vic Company: Operating income Sales Beginning operating assets Ending operating assets Required: (Round up all answers to the nearest 2 decimal place) (i) What is Vic Company's Return on Investment (ROI)? (ii) (iii) $62,000 $459,000 $210,000 $380,000 (2 marks) Suppose that the company sets a minimum rate of return of 12%, what is the residual income? (2 marks) Give ONE (1) advantage and ONE (1) disadvantage of using residual income as a performance evaluation tool. (4 marks)

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