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Calculating Residual Income

Forchen, Inc., provided the following information for two of its divisions for last year:

	Small Appliances Division	Cleaning Products Division
Sales	$34,680,000	$31,340,000
Operating income	2,490,100	1,252,500
Operating assets, January 1	6,394,000	5,680,000
Operating assets, December 31	7,530,000	6,350,000

Forchen, Inc., requires an 6 percent minimum rate of return.

Required:

1. Calculate residual income for the Small Appliances Division.

$ fill in the blank 1

2. Calculate residual income for the Cleaning Products Division.

$ fill in the blank 2