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

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):
$\begin{array}{lr}\text { August 20xx Pretax operating income } & \$ 300,000 \\\text { August 20xx sales } & 450,000 \\\text { Assets at July 31, 20xx } & 500,000 \\\text { Assets at August 31, 20xx } & 510,000 \\\text { August 20xx income taxes } & 90,000 \\\text { Current liabilities at August 31, 20xx } & 250,000 \\\text { Cost of capital } & 19 \% \\\text { Desired ROI } & 52 \% \\\hline\end{array}$

Correct Answer:

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Assets Invested = ($510,000 + $500,000) ...

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