Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 135,000 $ 131,000 Accounts receivable 346,000 471,000 Inventory 571,000 476,000 Plant and equipment, net 868,000 882,000 Investment in Buisson, S.A. 396,000 431,000 Land (undeveloped) 248,000 248,000 Total assets $ 2,564,000 $ 2,639,000 Liabilities and Stockholders' Equity Accounts payable $ 379,000 $ 342,000 Long-term debt 979,000 979,000 Stockholders' equity 1,206,000 1,318,000 Total liabilities and stockholders' equity $ 2,564,000 $ 2,639,000 Joel de Paris, Inc. Income Statement Sales $ 3,880,000 Operating expenses 3,375,600 Net operating income 504,400 Interest and taxes: Interest expense $ 123,000 Tax expense 197,000 320,000 Net income $ 184,400 The company paid dividends of $72,400 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 2 decimal places.)

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?