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<p><strong><span>Results from Yllaw Company are as follows:</span></strong></p> <table border="0"><tbody> <tr> <td><strong><span>Operating Income</span></strong></td> <td><strong><span>$8698</span></strong></td> </tr> <tr> <td><strong><span>Total Assets</span></strong></td> <td><strong><span>$15158</span></strong></td> </tr> <tr> <td><strong><span>Current Liabilities</span></strong></td> <td><strong><span>$3383</span></strong></td> </tr> <tr> <td><strong><span>Sales</span></strong></td> <td><strong><span>$34385</span></strong></td> </tr> <tr> <td><strong><span>Target Rate of Return (Cost of Capital)</span></strong></td> <td><strong><span>12%</span></strong></td> </tr> </tbody></table> <p><strong><span> </span></strong></p> <p><strong><span>Calculate Residual Income. If your answer is a percentage, input it to one decimal place. For example .1222 should be input as 12.2. Otherwise round your answer to one decimal place.</span></strong></p>

Results from Yllaw Company are as follows:

Calculate Residual Income. If your answer is a percentage, input it to one decimal place. For example .1222 should be input as 12.2. Otherwise round your answer to one decimal place.

Operating Income $8698 Total Assets $15158 Current Liabilities $3383 Sales $34385 Target Rate of Return (Cost of Capital) 12%

Explanation / Answer

Yllaw Company Details Amt $ Assuming all current liabilities are non interest bearing liabilites. a Total Assets                          15,158 b Current Laibilities                            3,383 c Invested Capital =a-b=                          11,775 d Opearting Income                            8,698 e Target rate of Return 12% f Traget Required return amount                            1,413 g Residual Income Amount                            7,285 h Residual Income % 61.9%