2) ROI and Residual Income (10 points) Financial data for FF Company for last year is presented below: Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (et) Land (undeveloped Total assets $50,000 20,000 30,000 120,000 120.000 $390.000 $70,000 25,000 35,000 110,000 170.000 $410.000 Liabilities and orwer's equity Accounts payable Long-term debe Owners' equity Totallibilities and onwer's equity 70,000 170.000 150,000 $390.000 90,000 150.000 170,000 $410.000 Income Statement $414,000 351200 62,100 Sales Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net income 30,000 10000 40.000 $22.100 The company paid dividends of $2,100 last year. The "Land (undeveloped)" on the statement of financial position is not used for the productive activities. a. Compute the company's margin, turnover, and return on investment for last year. (5 points) b. The Board of Directors of Beaker Company has set a minimum required return of 20%. What was the company's residual income last year? (5 points)