Financial data for Redstone Company for last year appear below:

Redstone Company Statements of Financial Position
	Beginning Balance		Ending Balance
Assets:
Cash	$	308,000	$	246,245
Accounts receivable		131,000		164,000
Inventory		325,000		256,000
Plant and equipment (net)		460,000		453,000
Investment in Balsam Company		243,000		312,000
Land (undeveloped)		300,000		300,000
Total assets	$	1,767,000	$	1,731,245
Liabilities and owners equity:
Accounts payable	$	168,000	$	145,000
Long-term debt		809,000		809,000
Owners equity		790,000		777,245
Total liabilities and owners equity	$	1,767,000	$	1,731,245

Redstone Company Income statement
Sales			$	1,780,000
Less operating expenses				1,450,700
Net operating income				329,300
Less interest and taxes:
Interest expense	$	93,800
Tax expense		115,255		209,055
Net income			$	120,245

The company paid dividends of $133,000 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		%

b.	The Board of Directors of Redstone has set a minimum required return of 25%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.)

Residual income