Financial data for Windsor, Inc. for last year appear below: Windsor, Inc. Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 336,000 $ 299,888 Accounts receivable 139,000 149,000 Inventory 236,000 254,000 Plant and equipment (net) 452,000 479,000 Investment in Pine Company 269,000 267,000 Land (undeveloped) 377,000 377,000 Total assets $ 1,809,000 $ 1,825,888 Liabilities and owners equity: Accounts payable $ 203,000 $ 185,000 Long-term debt 834,000 834,000 Owners equity 772,000 806,888 Total liabilities and owners equity $ 1,809,000 $ 1,825,888 Windsor, Inc. Income statement Sales $ 2,280,000 Less operating expenses 1,812,600 Net operating income 467,400 Less interest and taxes: Interest expense $ 104,900 Tax expense 177,612 282,512 Net income $ 184,888 The company paid dividends of $150,000 last year. The "Investment in Pine Company" on the statement of financial position represents an investment in the stock of another company.
Required:
a. Compute the company's margin, turnover, and return on investment for last year. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "%" sign in your response.) Margin % Turnover Return on investment %
b. The Board of Directors of Windsor, Inc. has set a minimum required return of 35%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.)