2: 7 marks) Presented below is information for Dafra Company for the 2021. year Dafra Company Balance sheet December 31, 2021 January 1, 2021 Cash Account receivable Inventory Prepaid expense Land held for future use $ 55,000 $ 33,000 20,000 30,000 65,000 60,000 15,000 10,000 130,000 20,000 in another company) Building Investment in Eagle company (an investment Total assets Account payable Income taxes payable Bonds payable 120,000 110,000 8,000 358,000 7,000 237,000 $ 38,000 $ 22,000 16,000 18,000 130,000 20,000 Common stock 120,000 119,000 Retained earnings 92,000 80,000 Total liabilities and stockholders' equity 358000 237000 Dafra Company Income statement Sales $507,000 Operating expenses $350,00 Net operating income 157,000 Interest and taxes: Interest expense 18,000 Tax expense 17,750 121,250 Net income The board of directors declared and paid a $30,000 cash dividend in 2021. The company's minimum required rate of return of 30%. Instructions a. Compute the company's margin, turnover, and return on investment (ROI) for year 2021. (1+1+1=3 marks) b. Compute the company residual income for year 2021. (1 mark) c. If the manager of Dafra company is evaluated based on ROI, will he/she want to make an investment of $200,000 that has the following characteristics? Justify your answer. (1.5+1.5-3 marks) Sales Contribution margin ratio Fixed expenses 200,000 50% of sales 40,000