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 $ 125,000 $ 134,000
Accounts receivable 344,000 471,000
Inventory 576,000 476,000
Plant and equipment, net 815,000 819,000
Investment in Buisson, S.A. 409,000 429,000
Land (undeveloped) 252,000 250,000
Total assets $ 2,521,000 $ 2,579,000
Liabilities and Stockholders' Equity
Accounts payable $ 379,000 $ 343,000
Long-term debt 1,031,000 1,031,000
Stockholders' equity 1,111,000 1,205,000
Total liabilities and stockholders' equity $ 2,521,000 $ 2,579,000


Joel de Paris, Inc.
Income Statement
Sales $ 3,948,000
Operating expenses 3,434,760
Net operating income 513,240
Interest and taxes:
Interest expense $ 124,000
Tax expense 207,000 331,000
Net income $ 182,240


The company paid dividends of $88,240 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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