Financial data for Snape Company for last year appears below:

Snape CompanyStatements of Financial Position Beginning BalanceEnding BalanceAssets: Cash$58,000$78,000Accounts receivable28,00027,000Inventory36,00040,000Plant and equipment (net)123,000113,000Investment in Potter Company82,000102,000Land (underdeveloped)170,000170,000Total assets$497,000$530,000Liabilities and owners' equity: Accounts payable$57,000$70,000Long-term debt270,000270,000Owners' equity170,000190,000Total liabilities and owners' equity$497,000$530,000

Snape CompanyIncome StatementSales $413,000Less operating expenses 352,000Net operating income 61,000Less interest and taxes: Interest expense$30,000 Tax expense13,00043,000Operating Income $18,000

The company paid dividends of $2,000 last year. The "Investment in Potter Company" on the statement of financial position represents an investment in the stock of another company.

Required:

1. Compute the company's margin, turnover, and return on investment for last year.
2. The Board of Directors of Snape Company have set a minimum required return of 20%. What was the company's residual income last year?