Question 3 (8 marks) Financial data for Bingham Company for last year appear below: Bingham Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $135,000 $266,000 Accounts receivable 225,000 475,000 Inventory 314,000 394,000 Plant and equipment (net) 940,000 860,000 Investment in Carr Company 104,000 101,000 Land (undeveloped) 198,000 65,000 Total assets $1.916,000 $2,161.000 Total assets $1916,000 $2,161,000 Liabilities and owners' equity: Accounts payable $88,000 $119,000 Long-term debt 585,000 665,000 Owners' equity 1,243,000 1,377,000 Total liabilities and owners' equity $1,916,000 $2,161,000 Bingham Company Income Statement $4,644,000 Sales 4,291,000 less operating expenses Net operating income 353,000 Less interest and taxes: Interest expense $90,000 Tax expense 129,000 219,000 Operating Income $134,000 The "Investment in Carr 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. (6 marks) Required: a) Compute the company's margin, turnover, and return on investment for last year. (6 marks) b) The Board of Directors of Beaker Company have set a minimum required return of 15%. What was the company's residual income last year? (2 marks)