Residual Income

Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year, the company had net operating income of $480,000 on sales of $1,900,000. The company’s average operating assets for the year were $2,100,000 and its minimum required rate of return was 16%.Required:Compute the company’s residual income for the year.Question:Residual Income?

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