Calculate average operating assets

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Reference no: EM131697329

Question: East Mullett Manufacturing earned operating income last year as shown in the following income statement:

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At the beginning of the year, the value of operating assets was $345,000. At the end of the year, the value of operating assets was $405,000.

Calculating Residual Income Refer to the information for East Mullett Manufacturing on the previous page. East Mullett requires a minimum rate of return of 10 percent.

Required: Calculate

(1) average operating assets and

(2) residual income.

Reference no: EM131697329

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