Indigo Perfume Company Balance Sheet $ Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Balsam Company Land (undeveloped) Total assets Beginning Balance 90,000 $ 148,000 62,000 190,460 50,000 100.000 640.460 $ Ending Balance 93,000 146,000 61,000 189,000 60,000 100.000 649.000 $ $ Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity 70,460 $ 500,000 70.000 640.460 $ 71,205 484.000 93.795 649.000 $ Indigo Perfume Company Income Statement Sales Cost of Goods Sold Gross Profit Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net income $1,307,579 906.000 401,579 312,664 88.915 30,000 15.120 45,120 43.795 $ The company paid dividends of $20,000 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. 17.50% b. The Board of Directors of Indigo Perfume has set a minimum required return of What was the company's residual income last year