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

Stirling, Inc.
Balance Sheet
	Beginning Balance	Ending Balance
Assets
Cash	$ 164,000	$ 161,000
Accounts receivable	409,000	553,000
Inventory	663,000	578,000
Plant and equipment, net	1,024,000	1,008,000
Investment in Brier Company	480,000	504,000
Land (undeveloped)	296,000	300,000
Total assets	$3,036,000	$3,104,000
Liabilities and Stockholders' Equity
Accounts payable	$456,000	$414,000
Long-term debt	1,149,000	1,149,000
Stockholders' equity	1,431,000	1,541,000
Total liabilities and stockholders' equity	$3,036,000	$3,104,000

Stirling, Inc.
Income Statement
Sales		$6,404,000
Operating expenses		5,255,520
Net operating income		1,148,480
Interest and taxes:
Interest expense	$205,000
Tax expense	292,000	497,000
Net income		$651,480

The company paid dividends of $316,480 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the stock of another company.

Required:

1. Compute the company's margin, turnover, and return on investment (ROI) for last year.

2. The board of directors of Stirling, Inc., has set a minimum required return of 13%. What was the company's residual income last year?