Results from Supreme Corporation's most recent year of operations are presented in the following table:
Operating income ................................................ $ 8,060
Total assets ........................................................... $15,500
Current liabilities .................................................. $ 4,300
Sales ..................................................................... $31,000
Target rate of return .................................................. 16%
Requirements
1. Calculate the sales margin, capital turnover, and return on investment (ROI).
2. Calculate the residual income (RI).