Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $440,000 on sales of $1,100,000. The companys average operating assets for the year were $1,300,000 and its minimum required rate of return was 11%.

Required:

Compute the companys residual income for the year.

1. Average Operating Assets :

2. Net Operating Income:

3. Minimum Required Return:

4. Residual Income: