Consider the following information for Marx Electronics:

12/31/2017 12/31/2018

Total assets $12,195,000$ 12,662,100

Noninterest-bearing current liabilities 548,900 603,000

Net income 760,400 861,430

Interest expense 2,256,300 331,060

Tax rate 40% 40%

Required rate of return 10% 12%

Evaluate the company in terms of residual income (RI), which is equivalent to EVA since there are no adjustments for accounting distortions.

2017 2018

Residual income $ Residual Income $