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Dade Corp. has residual income of $10,840. If operating income equals $31,000 and the minimum required rate of return is 8%, what are average invested assets

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Based on residual income, the operating income, and the minimum rate of return, the average invested assets must be $252,000.

What are the average invested assets?

First find the required return on assets amount as:

= Operating income - Residual income

= 31,000 - 10,840

= $20,160

This amount is equal to the 8% required rate of assets so the average invested assets is:

= Required return amount / Required return rate

= 20,160 / 8%

= $252,000

Find out more on the uses of required rate of return at https://brainly.com/question/14053729.

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