Financial data for Bridge Inc., for last year are as follows:

Assets Beginning Ending

Cash 125,000 130,000

Accounts receivable 340,000 480,000

Inventory 570,000 490,000

Plant and equipment, net 845,000 820,000

Investment In Brier company 400,000 430,000

Land (undeveloped) 250000 250,000

Total assets 2,530,000 2,600,000

Liabilities and SHE

Accounts payable 380,000 340,000

Long term debt 1,000,000 1,000,000

Stockholder's equity 1,150,000 1,260,000

Total liabilities and SHE 2,530,000 2,600,000

Sales 4,180,000

Operating expenses 3,553,000

Net operating income 627,000

Interest and taxes Interest 120,000

Taxes 200,000 320,000

Net Income 307,000

The company paid dividends of 197,000 last year. The investment in Brier represents an investment in the stock of another company. Required:

1. Compute the company's margin, turnover, and return on investment for last year.

2. The board of directors of Bridger Inc., has set a minimum required return of 20%. What was the company's residual income last year?