12-31-2017

Total assets: $12,650,000 Noninterest-bearing current liabilities: 550,000 Net income: 770,000 Interest expense: 2,310,000 Tax rate: 40% Required rate of return: 10%

12-31-2018

Total assets: $12,100,000 Noninterest-bearing current liabilities: 572,000 Net income: 880,000 Interest expense: 330,000 Tax rate: 40% Required rate of return: 12%

A. evaluate the company in terms of residual income, which is equivalent to EVA since there are no adjustments for accounting distortions.

B. While income has increased in fiscal 2018, is it clear that the company's performance has improved?

Please show all work so I will understand how to do a problem similar to this one. I am lost.