1.Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year, the company had net operating income of $440,000 on sales of $1,200,000. The companys average operating assets for the year were $1,400,000 and its minimum required rate of return was 11%.

Required:

Compute the companys residual income for the year.

2.Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Sales	$	17,900,000
Net operating income	$	5,200,000
Average operating assets	$	35,100,000

Required:

1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)

2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)

3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)

3.Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

	Division
	Osaka		Yokohama
Sales	$	10,500,000	$	35,000,000
Net operating income	$	630,000	$	2,800,000
Average operating assets	$	3,500,000	$	17,500,000

Required:

1. For each division, compute the return on investment (ROI) in terms of margin and turnover.

2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division.

3. Is Yokohamas greater amount of residual income an indication that it is better managed?

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

Joel de Paris, Inc. Balance Sheet
	Beginning Balance			Ending Balance
Assets
Cash	$	140,000		$	120,000
Accounts receivable		450,000			530,000
Inventory		320,000			380,000
Plant and equipment, net		680,000			620,000
Investment in Buisson, S.A.		250,000			280,000
Land (undeveloped)		180,000			170,000
Total assets	$	2,020,000		$	2,100,000
Liabilities and Stockholders' Equity
Accounts payable	$	360,000		$	310,000
Long-term debt		1,500,000			1,500,000
Stockholders' equity		160,000			290,000
Total liabilities and stockholders' equity	$	2,020,000		$	2,100,000

Joel de Paris, Inc. Income Statement
Sales					$	4,050,000
Operating expenses						3,645,000
Net operating income						405,000
Interest and taxes:
Interest expense	$	150,000
Tax expense		110,000				260,000
Net income					$	145,000

The company paid dividends of $15,000 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Turnover" to 1 decimal place.)

3. What was the companys residual income last year?