Exerclse $11-2($Algo$)$ Residual Income $[$L$011-2]$

Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $$500,000$ on

sales of $$2,100,000.$ The company's average operating assets were $$2,300,000$ and its minimum required rate of return was $13\%.$

Requlred:

Compute the company's residual income.

Residual income