Sanford Company Reported the Following Information for the Current Year

Sanford Company reported the following information for the current year:
Required:
Based on this information, calculate the company's residual income. $$\begin{array} { | l | l r | } \hline \text { Sales } & \$ & 880,000 \\\hline \text { Average operating assets } & \$ & 475,000 \\\hline \text { Desired ROI } & & 10 \% \\\hline \text { Net income } & \$ & 90,000 \\\hline\end{array}$$

Correct Answer:

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Residual Income = Net Income -...

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