Fon Company has the following operating data for the past year:
Sales |
$714,000 |
Variable Cost |
$250,000 |
Fixed Cost |
$100,000 |
Minimum required rate of return |
16% |
Balance Sheet Data for beginning and end of year:
Assets |
Beginning |
Ending |
Cash |
$5,000 |
$5,000 |
Accounts Receivable |
$35,000 |
$40,000 |
Inventory |
$90,000 |
$95,000 |
Net PP&E |
$100,000 |
$115,000 |
Land (held for future use) |
$40,000 |
$40,000 |
Investments in affiliates |
$5,000 |
$0 |
Total Assets |
$275,000 |
$295,000 |
Liabilities & SH Equity |
||
Short Term Debt |
$22,000 |
$27,000 |
Long Term Debt |
$116,000 |
$117,000 |
Stockholder's Equity |
$137,000 |
$151,000 |
Total Liabilities and SH Equity |
$275,000 |
$295,000 |
Q) Fon Company's residual income for the past year is closest to:
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