WHAT IS THE OPERATING INCOME LOSS (in dollars) FOR EACH YEAR?

WHAT IS THE OPERATING INCOME (percentage) FOR EACH YEAR?

THE COMPANY MADE A STRATEGIC DECISION TO INVEST IN ADDITIONAL ASSETS IN THE CURRENT YEAR. THESE AMOUNTS ARE PROVIDED. USE THE TOTAL ASSETS AMOUNTS AS THE INVESTMENT BASE, THEN CALCULATE A RETURN ON INVESTMENT. WAS THAT DECSION SUCESSFUL? WHY OR WHY NOT?

ASSUMING 8% COST OF CAPITAL, CALCULATE THE RESIDUAL INCOME FOR EACH YEAR. EXPLAIN HOW IT IS CONNECT TO THE ANSWER BEFORE.

FORKLIFT MATERIAL HANDLING Income Statement Comparison Current Year Prior Year (Amounts in thousands) Sales Cost of goods sold Gross profit Wages Utilities Sepairs Total expenses Operating income Operating income \% Total assets (investment base) Return on investment Residual income ( 8% cost of capital) $33,75021,938$11,812$8,775675169506$10,125??4,500$24,750$7,92016,830$6,188250325$6,963?$1,500