Calculating Residual Income Pelican Manufacturing earned operating income last year as shown in the following income statement:
Sales $531,250 Cost of goods sold 280,000 Gross margin $251,250 Selling and administrative expense 184,400 Operating income $66,850 Less: Income taxes (@ 40%) 26,740 Net income $40,110 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. Pelican requires a minimum rate of return of 10%. Required: For Pelican, calculate: 1. Average operating assets $ 2. Residual income $
Correct option: The media only covered positive elements of the Space Race and never mentioned any setbacks.
The above given option does not talk about any aspect of media coverage of the space race and its effects on the economy. Covering only positive aspect without explaining its economic implications does not have any positive or negative effect on any economic activity, externalities or economic well being of any country. On the other hand, option B , C and D talks about economic implications.
Hachiro still needs to work on his accountability to be able to put into consideration the effect of the activities of his company on the society. Accountability involves being able to take record of one's action and also being to take responsibility for actions.
