Results from Percy Corporation’s most recent year of operations is presented in the ­following table:

Operating income.......................................... $ 8,060

Total assets..................................................... $ 15,500

Current liabilities............................................ $ 4,000

Sales............................................................... $ 31,000

Target rate of return............................................ 15%

Requirements

1. Calculate the sales margin, capital turnover, and return on investment (ROI).

2. Calculate the residual income (RI).