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Item 1

Financial data for Joel de Paris, Incorporated, for last year follow:

Joel de Paris, Incorporated Balance Sheet
	Beginning Balance	Ending Balance
Assets
Cash	$ 126,000	$ 127,000
Accounts receivable	339,000	481,000
Inventory	580,000	471,000
Plant and equipment, net	835,000	841,000
Investment in Buisson, S.A.	394,000	430,000
Land (undeveloped)	250,000	248,000
Total assets	$ 2,524,000	$ 2,598,000
Liabilities and Stockholders' Equity
Accounts payable	$ 372,000	$ 340,000
Long-term debt	995,000	995,000
Stockholders' equity	1,157,000	1,263,000
Total liabilities and stockholders' equity	$ 2,524,000	$ 2,598,000

Joel de Paris, Incorporated Income Statement
Sales		$ 3,990,000
Operating expenses		3,391,500
Net operating income		598,500
Interest and taxes:
Interest expense	$ 114,000
Tax expense	199,000	313,000
Net income		$ 285,500

The company paid dividends of $179,500 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

3. What was the companys residual income last year?

	1. Average operating assets 2. Margin % 2. Turnover 2. ROI % 3. Residual income

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