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 $420,000 on sales of $1,500,000. The company's average operating assets for the year were $1,700,000 and its minimum required rate of return was 11%.

Required:

Compute the company's residual income for the year.

Average Operating Assets

Net Operating Income

Minimum required rate

Residual Income