Calculating Economic Value Added Barnard Manufacturing earned operating income last year as shown in the following income statement: Sales Cost of goods sold $4,000,000 2,100,000 $1,900,000 1,100,000 $800,000 320,000 $480,000 Gross margin Selling and administrative expense Operating income Less: Income taxes (@ 40%) Net income At the beginning of the year, the value of operating assets was $2,700,000. At the end of the year, the value of operating assets was $2,300,000 Total capital employed equaled $1,400,000. Barnard's actual cost of capital is 12%. Required Calculate the EVA for Barnard Manufacturing