Which of these indicates that a firm is efficient

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Reference no: EM13878167

1. What is the residual income for a firm with $1 million in total capital, $300,000 in net income, and a 20% cost of capital?

A. $100,000

B. $140,000

C. $240,000

D. $500,000

2. Which of these indicates that a firm is efficient?

A. A high average collection period

B. A high day's sales in inventories

C. A low asset turnover

D. A high inventory turnover

Reference no: EM13878167

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