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    Calculate Residual Income for Midlands Design Ltd.

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    Residual Income [LO3]
    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 £400,000 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 16%.

    Required:
    Compute the company's residual income for the year. (Omit the "£" sign in your response.)

    © BrainMass Inc. brainmass.com June 3, 2020, 11:09 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculate-residual-income-midlands-design-ltd-265441

    Solution Summary

    The solution explains how to calculate residual income

    $2.19

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