Kristen Roper Oversees Her Company's Largest and Most Profitable Investment

Essay

Kristen Roper oversees her company's largest and most profitable investment center.She has asked you,as her staff accountant,to compute the center's ROI,residual income,and EVA for the month of August 20xx,using the following information (rounded to two decimal places):
$$\begin{array} { l r } \text { August 20xx operating income } & \$ 300,000 \\\text { August } 20 x x \text { sales } & 450,000 \\\text { Assets at July 31, 20xx } & 500,000 \\\text { Assets at August 31, 20xx } & 510,000 \\\text { August 20x6 income taxes } & 90,000 \\\text { Current liablities at August 31, 20xx } & 250,000 \\\text { Cost of capital } & 19 \% \\\text { Desired ROI } & 52 \%\end{array}$$