Financial data for last year appear below:

Redstone Company Statements of Financial Position
	Beginning Balance		Ending Balance
Assets:
Cash	$	263,000	$	31,164
Accounts receivable		126,000		215,000
Inventory		255,000		266,000
Plant and equipment (net)		466,000		473,000
Investment in Balsam Company		221,000		293,000
Land (undeveloped)		497,000		497,000
Total assets	$	1,828,000	$	1,775,164
Liabilities and owners equity:
Accounts payable	$	164,000	$	228,000
Long-term debt		884,000		884,000
Owners equity		780,000		663,164
Total liabilities and owners equity	$	1,828,000	$	1,775,164

Redstone Company Income statement

Sales

$

2,040,000

Less operating expenses

1,795,200

Net operating income

244,800

Less interest and taxes:

Interest expense

$

100,300

Tax expense

78,336

178,636

Net income

$

66,164

The company paid dividends of $183,000 last year. The "Investment in Balsam Company" on the statement of financial position represents an investment in the stock of another company.

Required:
a.	Compute the company's margin, turnover, and return on investment for last year. (Round your intermediate calculations and final answers to 2 decimal places.)

Margin		%
Turnover
Return on investment		%

The Board of Directors has set a minimum required return of 20%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.)

	Residual income