Question - 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 $480,000 on sales of $1,200,000. The company's average operating assets for the year were $1,400,000 and its minimum required rate of return was 14%.
Required: Compute the company's residual income for the year.
Average operating assets =
Net operating income =
Minimum required income =
Residual income =