Follow instructions on screen? (- 0 a https://newconnect. ACC 219 Chapter 11 Sav
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Follow instructions on screen?
(- 0 a https://newconnect. ACC 219 Chapter 11 Saved Help Save & Exit Submit Check my work 2 Juniper Design Ltd of Manchester. England, is a company specializing in providing design services to residential developers. Last year were $2,000,000 and its minimum required rate of return was 15%. ompany had net operating income of $490.000 on sales of $1,800,000. The company's average operating assets for the 10 points Compute the company's residual income for the year Print Prev 2 of 3 Type here to searchExplanation / Answer
Answer:
Average Operating Assets = $2,000,000
Net Operating Income = $490,000
Minimum Required Return = 15% of $2,000,000
Minimum Required Return = $300,000
Residual Income = Net Operating Income - Minimum required Return
Residual Income = $490,000 - $300,000
Residual Income = $190,000