Results from Elite Corporation's most recent year of operations are presented in the following table.
Operating income...................................... $ 9,000
Total assets............................................... $15,000
Current liabilities...................................... $ 3,600
Sales........................................................ $36,000
Target rate of return..................................... 14%
Requirements
1. Calculate the sales margin, capital turnover, and return on investment (ROI).
2. Calculate the residual income (RI).