Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $3,650,000 Cost of goods sold 2,150,000 Gross margin $1,500,000 Selling and administrative expense 1,300,000 Operating income $200,000 Less: Income taxes (40%) 80,000 Net income $120,000 At the beginning of the year, the value of operating assets was $2,000,000. At the end of the year, the value of operating assets was $1,600,000. East Mullett requires a minimum rate of return of 6%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet