Financial data for Redstone Company for last year appear below:

Redstone Company Statements of Financial Position
	Beginning Balance		Ending Balance
Assets:
Cash	$	256,000	$	231,240
Accounts receivable		144,000		192,000
Inventory		310,000		240,000
Plant and equipment (net)		492,000		445,000
Investment in Balsam Company		301,000		286,000
Land (undeveloped)		280,000		280,000
Total assets	$	1,783,000	$	1,674,240
Liabilities and owners equity:
Accounts payable	$	214,000	$	238,000
Long-term debt		810,000		810,000
Owners equity		759,000		626,240
Total liabilities and owners equity	$	1,783,000	$	1,674,240

Redstone Company Income statement
Sales			$	2,060,000
Less operating expenses				1,854,000
Net operating income				206,000
Less interest and taxes:
Interest expense	$	96,900
Tax expense		63,860		160,760
Net income			$	45,240

The company paid dividends of $178,000 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 15%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.)