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WOW Company has the following information for its 2021 fiscal period: Sales $650,000 Operating Income $325,000 Shareholders' Equity $610,000 Average Operating Assets $880.000 Minimum Required
WOW Company has the following information for its 2021 fiscal period: Sales $650,000 Operating Income $325,000 Shareholders' Equity $610,000 Average Operating Assets $880.000 Minimum Required Rate of Return 25% Gross profit rate 35% Required: What is WOW's residual income? Briefly explain your findings. (5 marks) h. What is WOW' s return on investment (RI)? Brieflv exnlain vour findines.
WOW Company has the following information for its 2021 fiscal period:
Sales
$650,000
Operating Income
$325,000
Shareholders' Equity
$610,000
Average Operating Assets
$880.000
Minimum Required Rate of Return
25%
Gross profit rate
35%
Required:
What is WOW's residual income? Briefly explain your findings. (5 marks)
h.
What is WOW' s return on investment (RI)? Brieflv exnlain vour findines.
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