The following data is provided on behalf of Mittens Incorporated for last year appear below:

Mittens Incorporated
Statements of Financial Position
For the Year Ended June 2020
	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 Scarf Company	104,000	101,000
Land (undeveloped)	198,000	65,000
Total assets	$1,916,000	$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

Mittens Incorporated
Income Statement
June 2020
Sales		$4,644,000
Less operating expenses		4,291,000
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 Scarf Company" on the statement of financial position represents an investment in the stock of another company.

Required:

1. Compute the company's margin, turnover, and return on investment for last year.
2. The Board of Directors of Mittens Company have set a minimum required return of 15%. What was the company's residual income last year?