Financial data for Redstone Company for last year appear below:

Redstone Company Statements of Financial Position
	Beginning Balance		Ending Balance
Assets:
Cash	$	288,000	$	189,663
Accounts receivable		126,000		191,000
Inventory		264,000		286,000
Plant and equipment (net)		442,000		450,000
Investment in Balsam Company		243,000		262,000
Land (undeveloped)		458,000		458,000
Total assets	$	1,821,000	$	1,836,663
Liabilities and owners equity:
Accounts payable	$	252,000	$	223,000
Long-term debt		841,000		841,000
Owners equity		728,000		772,663
Total liabilities and owners equity	$	1,821,000	$	1,836,663

Redstone Company Income statement
Sales			$	2,310,000
Less operating expenses				1,871,100
Net operating income				438,900
Less interest and taxes:
Interest expense	$	105,400
Tax expense		144,837		250,237
Net income			$	188,663

The company paid dividends of $144,000 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 35%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.)