FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The following information is from Bluff Run Golf Courses. The company runs two courses and the July income statement for each course is shown below. What is the residual income (RI) for the Blue course? Round to 2 decimal places
Blue course | Black Course | |
Total Revenue | $73,500 | $95,000 |
Total expenses | $62,200 | $79,100 |
Total assets (investment base) | $94,200 | 106,000 |
Cost of capital | 11% | 13% |
Group of answer choices
$10,362
$938
$13,780
$2,120
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