Ch $11\mathrm{.}2$Exercise $11-2($Algo$)$ Residual Income $[$LO$11-2]$

Juniper Design Limited of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $$410,000$ on sales of $$1,600,000.$ The company's average operating assets for the year were $$1,800,000$ and its minimum required rate of return was $13\%.$

Required:

Compute the company's residual income for the year.

Residual income

$$226,000$