Exercise $10-2($Algo$)$ Residual Income $[$LO$10-2]$

Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $$470,000$ on sales of $$1,400,000.$ The company's average operating assets for the year were $$1,600,000$ and its minimum required rate of return was $15\%.$

Required:

Compute the company's residual income for the year.