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The following data show the past 2 years of operation for a company Return on Investment Residual Income Required Rate of Return Sales Asset Turnover

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The following data show the past 2 years of operation for a company Return on Investment Residual Income Required Rate of Return Sales Asset Turnover Assets Net Operating Income Year 1 18% ? 8% $400,000 Year 2 20% $25,000 10% $500,000 2 Additional Information: 1. The sales margin in Year 2 is twice the margin of the first year. 2. The company had the same asset turnover in both years. What is the residual income in Year 1? O $20.000 O $36.000 O $16,000 O $25.000

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