16. 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	$	130,000		$	131,000
Accounts receivable		339,000			472,000
Inventory		567,000			490,000
Plant and equipment, net		824,000			807,000
Investment in Buisson, S.A.		393,000			427,000
Land (undeveloped)		246,000			254,000
Total assets	$	2,499,000		$	2,581,000
Liabilities and Stockholders' Equity
Accounts payable	$	371,000		$	346,000
Long-term debt		1,033,000			1,033,000
Stockholders' equity		1,095,000			1,202,000
Total liabilities and stockholders' equity	$	2,499,000		$	2,581,000

Joel de Paris, Inc. Income Statement
Sales					$	4,324,000
Operating expenses						3,675,400
Net operating income						648,600
Interest and taxes:
Interest expense	$	127,000
Tax expense		192,000				319,000
Net income					$	329,600

The company paid dividends of $222,600 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?