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

Joel de Paris, Incorporated Balance Sheet

Beginning Balance Ending Balance

Assets

Cash $ $127,000$ $ $137,000$

Accounts receivable $342,000490,000$

Inventory $564,000471,000$

Plant and equipment, net $837,000812,000$

Investment in Buisson, S$.$A$.398,000427,000$

Land $($undeveloped$)253,000252,000$

Total assets $ $2,521,000$ $ $2,589,000$

Liabilities and Stockholders' Equity

Accounts payable $ $387,000$ $ $350,000$

Long$-$term debt $1,017,0001,017,000$

Stockholders' equity $1,117,0001,222,000$

Total liabilities and stockholders' equity $ $2,521,000$ $ $2,589,000$

Joel de Paris, Incorporated

Income Statement

Sales $ $4,536,000$

Operating expenses $3,946,320$

Net operating income $589,680$

Interest and taxes:

Interest expense $ $129,000$

Tax expense $191,000320,000$

Net income $ $269,680$

The company paid dividends of $$164,680$ last year. The $$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 $15\%.$

Required:

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

Compute the company$$s margin, turnover, and return on investment $($ROI$)$ for last year.

Note: Round "Margin", "Turnover" and "ROI" to $2$ decimal places.

What was the company$$s residual income last year?

Answer & Explanation Solved by verified expert

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