Calculating residual income pelican manufacturing earned operating income last year as shown in the following income statement: sales $531,250 cost of goods sold 280,000 gross margin $251,250 selling and administrative expense 184,400 operating income $66,850 less: income taxes (@ 40%) 26,740 net income $40,110 at the beginning of the year, the value of operating assets was $390,000. at the end of the year, the value of operating assets was $460,000. pelican requires a minimum rate of return of 10%. required: for pelican, calculate: 1. average operating assets $ 2. residual income $

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e.g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)