Problem 11-105 Financial data for Windsor, Inc...

Financial data for Windsor, Inc. for last year appear below:

Windsor, Inc. Statements of Financial Position
	Beginning Balance		Ending Balance
Assets:
Cash	$	273,000	$	336,920
Accounts receivable		191,000		200,000
Inventory		313,000		251,000
Plant and equipment (net)		438,000		398,000
Investment in Pine Company		255,000		277,000
Land (undeveloped)		305,000		305,000
Total assets	$	1,775,000	$	1,767,920
Liabilities and owners equity:
Accounts payable	$	192,000	$	171,000
Long-term debt		839,000		839,000
Owners equity		744,000		757,920
Total liabilities and owners equity	$	1,775,000	$	1,767,920

Windsor, Inc. Income statement
Sales			$	2,440,000
Less operating expenses				2,074,000
Net operating income				366,000
Less interest and taxes:
Interest expense	$	102,000
Tax expense		139,080		241,080
Net income			$	124,920

The company paid dividends of $111,000 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 26%. 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.)

Residual income

$