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Problem 12-5 Computing ROl and RI (LO2 - CC4, 6) Financial data for Joel de Paris Inc. for last year follow: JOEL DE PARIS INC. Balance Sheet Ending Balance Beginning Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A Land (undeveloped) $ 500,000 $ 750,000 1,750,000 1,000,000 1,500,000 360,000 260,000 1,500,000 1,000,000 2,000,000 395,000 240,000 Total assets $5,635,000 $5,620,000 Liabilities and Shareholders' Equity Accounts payable Long-term debt Shareholders' equity $ 947,200 $1,035,000 4,140,000 445,000 3,788,800 899,000 Total liabilities and shareholders' equity $5,635,000 $5,620,000 JOEL DE PARIS INC Income Statement Sales Less: Operating expenses $6,500,000 5,200,000 Net operating income Less: Interest and taxes: 1,300,000 Interest expense Tax expense $477,000 349,000 826,000 Net income $ 474,000 The company paid dividends of $20,000 last year. The "Investment in Buisson, S.A." on the balance sheet represents an investment in the shares of another company. Required: 1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round your answers to 2 decimal place.) Margin Turnover ROI 2. The board of directors of Joel de Paris Inc. has set a minimum required return of 21%. What was the company's residual income last year? Residual income

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