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6. Monfett Manufacturin g earned operating income last year as shown in the following income statement Sales Cost of goods sold Gross margin Selling and

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6. Monfett Manufacturin g earned operating income last year as shown in the following income statement Sales Cost of goods sold Gross margin Selling and administrative expense Operating income Less: Income taxes (at 40%) Net income $620,000 $304,000 219,000 $ 85,000 34.000 At the beginning of the year, the value of operating assets was $263,000. At the end of the year, the value of operating assets was $336,000. Monfett Manufacturing requires a minimum rate of return of 15%. Total capital employed equal $350,000 and actual cost of capital is 6%. Required: Calculate the following: A. (5 points) Residual income B. (5 points) EVA

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