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 Assets Cash Joel de Paris, Inc. Dolance Sheet Beginning Balance Ending Balonce $ 129,000 $ 134,000 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 350,000 578,000 773,000 393,000 248,000 479,000 471,000 786,000 425,000 255,000 $ 2,471,000 $ 2,550,000 $ 379,000 1,015,000 1,077,000 $ 2,471,000. $ 331,000 1,015,000 1,204,000 $ 2,550,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income. Interest and taxes: Interest expense. Tax expense Net income $ 124,000 $ 4,625,000 3,885,000 740,000 205,000 329,000 $ 411,000 The company paid dividends of $284,000 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? < Prev 3 of 3 Next