Beginning Balance			Ending Balance
Assets
Cash	$	128,000		$	134,000
Accounts receivable		337,000			479,000
Inventory		566,000			472,000
Plant and equipment, net		809,000			795,000
Investment in Buisson, S.A.		401,000			434,000
Land (undeveloped)		249,000			250,000
Total assets	$	2,490,000		$	2,564,000
Liabilities and Stockholders' Equity
Accounts payable	$	390,000		$	341,000
Long-term debt		1,040,000			1,040,000
Stockholders' equity		1,060,000			1,183,000
Total liabilities and stockholders' equity	$	2,490,000		$	2,564,000

Sales					$	4,650,000
Operating expenses						4,045,500
Net operating income						604,500
Interest and taxes:
Interest expense	$	121,000
Tax expense		197,000				318,000
Net income					$	286,500

The company paid dividends of $163,500 last year. The Investment in Buisson, S.A., on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%.

Required:

1. Compute the company's average operating assets for last year.

2. Compute the companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

3. What was the companys residual income last year?

1.	Average operating assets
2.	Margin		%
	Turnover
	ROI		%
3.	Residual income