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

Question

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

Sanford Company Reported the Following Information for the Current Year