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6. Monfett Manufacturing earned operating income last year as shown in the following income statement: Sales Cost of goods sold Gross margin Selling and administrative
6. Monfett Manufacturing 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 $620,000 316,000 $304,000 219.000 $ 85,000 34,000 S 51,000 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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