Reference no: EM132587225

Financial data for windsor, inc. for last year appear below: windsor, inc. statements of financial position beginning balance ending balance assets:

cash $ 346,000 $ 324,792

accounts receivable 202,000 159,000

inventory 298,000 299,000

plant and equipment (net) 463,000 455,000

investment in pine company 318,000 293,000

land (undeveloped) 237,000 237,000

total assets $ 1,864,000 $ 1,767,792

liabilities and owners' equity:

accounts payable $ 249,000 $ 228,000

long-term debt 855,000 855,000

owners' equity 760,000 684,792

total liabilities and owners' equity $ 1,864,000 $ 1,767,792 windsor, inc.

income statement sales $ 1,790,000

less operating expenses 1,440,950

net operating income 349,050

less interest and taxes:

interest expense $ 98,600

tax expense 125,658 224,258

net income $ 124,792 the company paid dividends of $200,000 last year.

The "investment in pine company" on the statement of financial position represents an investment in the stock of another company.

Required:

Question 1: 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 25%. what was the company's residual income last year?