Problem
Accustart Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax income of $3,780,000. Total interest expense was $1,782,000, and the hospital's tax rate was 20 percent. Hospital assets totaled $37,800,000, and noninterest-bearing current liabilities were $12,312,000. Superior has established a required rate of return equal to 18 percent of invested capital. Calculate the residual income/EVA of Accustart Hospital.