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Use the Following Information to Compute Residual Income A) $12,000

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Use the following information to compute residual income:  Sales $320,000 Operating inc ome $60,000 Average current assets $250,000 Cost of capital 12% Return on inw estment 15%\begin{array} { | l | r | } \hline \text { Sales } & \$ 320,000 \\\hline \text { Operating inc ome } & \$ 60,000 \\\hline \text { Average current assets } & \$ 250,000 \\\hline \text { Cost of capital } & 12 \% \\\hline \text { Return on inw estment } & 15 \% \\\hline\end{array}


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