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

Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	138,000	$	128,000
Accounts receivable		339,000		485,000
Inventory		564,000		475,000
Plant and equipment, net		829,000		822,000
Investment in Buisson, S.A.		407,000		427,000
Land (undeveloped)		254,000		253,000
Total assets	$	2,531,000	$	2,590,000
Liabilities and Stockholders' Equity
Accounts payable	$	374,000	$	341,000
Long-term debt		1,020,000		1,020,000
Stockholders' equity		1,137,000		1,229,000
Total liabilities and stockholders' equity	$	2,531,000	$	2,590,000

Joel de Paris, Inc. Income Statement
Sales		$	4,725,000
Operating expenses			3,969,000
Net operating income			756,000
Interest and taxes:
Interest expense	129,000
Tax expense	192,000		321,000
Net income		$	435,000

The company paid dividends of $343,000 last year. The Investment in Buisson, S.A., on the balance sheet represents an investment in the stock of another company.

Required:

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

Margin %:

Turnover times: ROI %:

2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 21%. What was the companys residual income last year?

Net operating income

minimum required return

residual income