Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett 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 Operating income 192,300 $58,950 Less: Income taxes (40%) 23,580 Net income $35,370 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. Required: For East Mullett Manufacturing, calculate the following: 1. Average operating assets 2. Margin (round to two decimal places) 3. Turnover (round to two decimal places) % 4. Return on investment (round to one decimal place) $ 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 Selling and administrative expense $251.250 178,700 Operating income 572,550 Less: Income taxes (40%) 29,020 Net income $43,530 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 5460,000. Pelican requires a minimum rate of return of 10% Required: For Pelican, calculate 1. Average operating assets 425,000 2. Residual income 16 X