Calculating Residual Income 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 Barnard requires a minimum rate of return of 15%. Required: Calculate: 1. Average operating assets $ 2. Residual income