Financial data for Redstone Company for last year appear below:

Redstone Company Statements of Financial Position
	Beginning Balance		Ending Balance
Assets:
Cash	$	341,000	$	336,590
Accounts receivable		188,000		192,000
Inventory		260,000		251,000
Plant and equipment (net)		448,000		385,000
Investment in Balsam Company		315,000		257,000
Land (undeveloped)		301,000		301,000
Total assets	$	1,853,000	$	1,722,590
Liabilities and owners equity:
Accounts payable	$	203,000	$	206,000
Long-term debt		892,000		892,000
Owners equity		758,000		624,590
Total liabilities and owners equity	$	1,853,000	$	1,722,590

Redstone Company Income statement
Sales			$	2,350,000
Less operating expenses				2,103,250
Net operating income				246,750
Less interest and taxes:
Interest expense	$	99,200
Tax expense		78,960		178,160
Net income			$	68,590

The company paid dividends of $202,000 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.)

b.	The Board of Directors of Redstone has set a minimum required return of 18%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.)