complete all requirements

1. Calculate residual income, assuming Doortune defines investment as total assets. 2. Calculate EVA for the year. Adjust both the year-end assets and operating income for advertising assuming that for the purposes of economic value added the advertising is capitalized and amortized on a straight-line basis over 4 years. 3. Discuss the difference between the outcomes of requirements 1 and 2 . Which measure would you recommend, and why? Doortune Company makes doorbels. It has a weighted-average cost of captal of 9%, and thtal assets of $5,800,000. Doortune has current habilitiet of 3950,000 . Its oporating inoome for the year was $645,000 Doortune does not have to pay any inoome taxos. One of the expenses for acoountng purposes was a $110,000 advertising campagn run in eatly January the entere aniount was deducted this year, although the Doortune CEO believos the beneficial eflects of this advertsing will last 4 yoars. Requirement 1. Cuculine atsuming Doortune dofees investment at tocal ascets. Begn by detemining the formuli, then enter the amounts and caltulste the fol for the your. Requirement 2. Caioulate EVA for the year. Adjust both the year ent aswts and operating inoome for advertisng astuming that for the puposes of economic value added the adverticng is cagitalized and amortirnd on a siraight-4ine tasis over 4 years. Begin by dedermining the formusa 15 cabulate the EVA, then enler the amourt and calculiee the EVA for the year. (Erter the WAcC as a dicimar in the format X