Video Calcufator eBook Calculating Residual Incone Pelican Manufacturing earned operating income last year as shown in the following income statement: Sales Cost of goods sold $531,250 280,000 $251,250 Selling and administrative expense 185,200 66,050 26,420 39,630 Gross margin Operating income Less: Income taxes ( 40%) Net income K) At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000. Pelican requires a minimum rate of return of 10%6 For Pelican, calculate: 1. Average operating assets 2. Residual income