Performance Reports for 2020

	Beginning	Ending
Assets:
Cash	$290,000	$451,280
Accounts Receivable	209,000	193,000
Inventory	282,000	232,000
Plant & Equipment (net)	430,000	393,000
Investments in other	304,000	255,000
Land	241,000	241,000
Total Assets	$1,756,000	$1,756,280
Liabilities and Owner's Equity:
Accounts Payable	$208,000	$175,000
Long-term Debt	824,000	824,000
Owner's Equity	724,000	766,280
Total Liab. & Owners' Equity	$1,756,000	$1,765,280

Income Statement for 2020

Sales		$3,148,350
Less Operating Expenses		-2,707,350
Net Operating Income		$441,000
Less interest and taxes:
Interest expense	$103,600
Tax Expense	$141,120
	Net Income	$196,280

The company paid dividends of $154,000 last year. The "Investment in Other" on the statement of financial position represents an investment in the stock of another company.

I. Compute the company's margin, turnover, and return on investment for last year.

II. The Board of Directors of Company has set a minimum required return of 30%. What was the company's residual income last year?