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 $600,000 on sales of $3,000,000. The company’s average operating assets for the year were $2,800,000 and its minimum required rate of return was 18%.


Required:

Compute the company’s residual income for the year.

Average Operating Assets-

Net Operating Income-

Minimum required return-

residual income-