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Financial data for Stirling, Inc., for last year are as follows: Stirling, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 156,000 $ 153,000

Financial data for Stirling, Inc., for last year are as follows:

Stirling, Inc. Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $ 156,000 $ 153,000
Accounts receivable 385,000 529,000
Inventory 631,000 546,000
Plant and equipment, net 976,000 960,000
Investment in Brier Company 456,000 480,000
Land (undeveloped) 280,000 284,000

Total assets $ 2,884,000 $ 2,952,000

Liabilities and Stockholders' Equity
Accounts payable $ 432,000 $ 390,000
Long-term debt 1,093,000 1,093,000
Stockholders' equity 1,359,000 1,469,000

Total liabilities and stockholders' equity $ 2,884,000 $ 2,952,000

Stirling, Inc. Income Statement
Sales $ 6,084,000
Operating expenses 5,095,520

Net operating income 988,480
Interest and taxes:
Interest expense $ 181,000
Tax expense 260,000 441,000

Net income $ 547,480

The company paid dividends of $284,480 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the stock of another company.

Required:
1.

Compute the companys margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations. Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

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2.

The board of directors of Stirling, Inc., has set a minimum required return of 14%. What was the companys residual income last year?

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