Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statement

Calculating Residual Income East Mullett 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 (@ 40%) Net income $531,250 280,000 $251,250 182,900 $68,350 27,340 $41,010 At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. East Mullett requires a minimum rate of return of 10%. Required: For East Mullett, calculate: 1. Average operating assets 2. Residual income Check My Work 3 more Check My Work uses remaining. Previous Next