Company residual income

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Reference no: EM1348381

Midlands 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 A?£430,000 on sales of A?£1,800,000. The company's average operating assets for the year were A? £2,000,000 and its minimum required rate of return was 16%. (The currency in the United Kingdom is the pound, denoted by A? £.)

Required:

Compute the company's residual income for the year.

Reference no: EM1348381

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