Financial data for Bingham company for last year appear below:

Bingham Company

Statements of Financial Position

ending balance beginning balance

Assets:

Cash $266,000 $135,000

Accounts receivable 475,000 225,000

Inventory 394,000 314,000

Plant and equipment (net) 860,000 940,000

Investment in Carr 101,000 104,000

Land (undeveloped) 65,000 198,000

Total assets $2,161,000 $1,916,000

Liabilities and owners equity:

Accounts payable $119,000 $88,000

Long-term debt 665,000 585,000

owners equity 1,377,000 1,243,000

Total liabilities and

owners equity $2,161,000 $1,916,000

Bingham company

income statement

Sales $4,644,000

Less operating expenses 4,291,000

Net operating income 353,000

Less interest and taxes:

Interest expense $90,000

Tax expense 129,000 219,000

Net income $134,000

The "investment in Carr Company" on the statement of financial position represents an investment in the stock of another company.

Required:

a. compute the company margin, turnover, and return on investment for last year

b. the board of directors of beaker company have set a minimum required return of 15%. What was the company's residual income last year?