Return on Investment (ROI) & Residual Income P 10-B Squash Company Balance Sheets This Year December 31, January 1, $ $ Assets Cash Accounts receivable Plant and equipment, net Investment in stock of Zucchini Company Undeveloped land Total assets 240,000 480,000 10,080,000 200,000 800,000 11,800,000 180,000 460,000 8,560,000 160,000 800,000 10,160,000 $ $ $ Liabilities and stockholders' equity All liabilities Stockholders' equity Total liabilities and stockholders' equity $ 240,000 11,560,000 $ 11,800,000 220,000 9,940,000 10,160,000 $ Squash Company Income Statement For the year ended December 31, This Year $ 16,000,000 14,000,000 2,000,000 $ Sales Less operating expenses Net operating income Less: interest expense income taxes Net Income $ 20,000 480,000 500,000 1,500,000 $ Required: 1) Calculate Squash Company's margin, turnover and return on investment for This Year (round to one-tenth of percent, if necessary). 2) Calculate the residual income for Squash Company, assuming their minimum required rate of return is 15%.