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The company paid dividends of $187,920 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?

Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income (LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and stockholders' Equity Accounts payable Long-term debt Stockholders equity Total liabilities and stockholders' equity 130,000 349,000 571,000 840,000 410,000 255,000 $ 2,555,000 $ 134,000 475,000 481,000 840,000 431,000 247,000 $ 2,600,000 $ 378,000 977,000 1,200,000 $ 2,555,000 $ 330,000 977,000 1,301,000 $ 2,600,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 116,000 Tax expense 191,000 Net income $ 4,584,000 3,988,080 595, 920 307,000 288,920 The company paid dividends of $187,920 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? Answer is complete but not entirely correct. 1. Average operating assets Margin Turnover ROI $ 2,581,500 13.00 2. 1.78 23.14 % 208,695 3 Residual income $

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