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The company paid dividends of $155,050 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?

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

Joel de Paris, Inc.

Balance Sheet

Beginning

Balance

Ending

Balance

Assets

Cash

$

133,000

$

127,000

Accounts receivable

332,000

486,000

Inventory

569,000

488,000

Plant and equipment, net

816,000

789,000

Investment in Buisson, S.A.

395,000

426,000

Land (undeveloped)

249,000

251,000

Total assets

$

2,494,000

$

2,567,000

Liabilities and Stockholders' Equity

Accounts payable

$

389,000

$

345,000

Long-term debt

979,000

979,000

Stockholders' equity

1,126,000

1,243,000

Total liabilities and stockholders' equity

$

2,494,000

$

2,567,000

Joel de Paris, Inc.

Income Statement

Sales

$

3,927,000

Operating expenses

3,337,950

Net operating income

589,050

Interest and taxes:

Interest expense

$

126,000

Tax expense

191,000

317,000

Net income

$

272,050

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

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