Question

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...

Financial data for Joel de Paris, Inc., for last year follow:

Joel de Paris, Inc.
Balance Sheet
Beginning
Balance
Ending
Balance
Assets
Cash $ 126,000 $ 135,000
Accounts receivable 338,000 486,000
Inventory 568,000 472,000
Plant and equipment, net 798,000 777,000
Investment in Buisson, S.A. 394,000 426,000
Land (undeveloped) 249,000 247,000
Total assets $ 2,473,000 $ 2,543,000
Liabilities and Stockholders' Equity
Accounts payable $ 372,000 $ 343,000
Long-term debt 1,022,000 1,022,000
Stockholders' equity 1,079,000 1,178,000
Total liabilities and stockholders' equity $ 2,473,000 $ 2,543,000
Joel de Paris, Inc.
Income Statement
Sales $ 4,440,000
Operating expenses 3,818,400
Net operating income 621,600
Interest and taxes:
Interest expense $ 119,000
Tax expense 210,000 329,000
Net income $ 292,600


The company paid dividends of $193,600 last year. The “Investment in Buisson, S.A.,” on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%.

Required:

1. Compute the company's average operating assets for last year.

2. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

3. What was the company’s residual income last year?

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