1. Compute the companys margin, turnover, and return on investment (ROI) for last year. (Round your answers to 1 decimal place.)

*Margin 14.00%, Turnover 1.70 times, ROI 11.28% (Turnover & ROI are incorrect)

2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 20%. What was the companys residual income last year?

Net operating income	$605,360
Minimum required return	509,500
Residual income	$95,860

*Minimum required return and residual income are incorrect.

Financial data for Joel de Paris, Inc., for last year follow: Ending Balance Joel de Paris, Inc. Balance Sheet Beginning Balance Assets Cash $ 128,000 $ Accounts receivable 331,000 Inventory 575,000 Plant and equipment, net 826,000 Investment in Buisson, S.A. 400,000 Land (undeveloped) 249,000 Total assets $ 2,509,000 $ Liabilities and Stockholders' Equity Accounts payable $ 372,000 $ Long-term debt 1,025,000 Stockholders' equity 1,112,000 Total liabilities and stockholders' equity $ 2,509,000 $ 129,000 482,000 473,000 816,000 434,000 252,000 2,586,000 334,000 1,025,000 1,227,000 2,586,000 Joel de Paris, Inc. Income Statement $ 4,324,000 3,718,640 605,360 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income 112,000 206,000 318,000 287,360 $ The company paid dividends of $172,360 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company