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Financial data for Stirling, Inc., for last year are as follows:

Stirling, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	164,000	$	161,000
Accounts receivable		409,000		553,000
Inventory		663,000		578,000
Plant and equipment, net		1,024,000		1,008,000
Investment in Brier Company		480,000		504,000
Land (undeveloped)		296,000		300,000
Total assets	$	3,036,000	$	3,104,000
Liabilities and Stockholders' Equity
Accounts payable	$	456,000	$	414,000
Long-term debt		1,149,000		1,149,000
Stockholders' equity		1,431,000		1,541,000
Total liabilities and stockholders' equity	$	3,036,000	$	3,104,000

Stirling, Inc. Income Statement
Sales		$	6,404,000
Operating expenses			5,255,520
Net operating income			1,148,480
Interest and taxes:
Interest expense	$ 205,000
Tax expense	292,000		497,000
Net income		$	651,480

The company paid dividends of $316,480 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the stock of another company.

Required:

1.

Compute the companys margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations. Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 2. The board of directors of Stirling, Inc., has set a minimum required return of 13%. What was the companys residual income last year?

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