Compute the companys residual income for the year

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Reference no: EM13894164

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 £410,000 on sales of £2,000,000. The company’s average operating assets for the year were £2,200,000 and its minimum required rate of return was 12%. (The currency in the United Kingdom is the pound, denoted by £.)

Required:

Compute the company’s residual income for the year.

Reference no: EM13894164

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