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		$	127,000
Accounts receivable		348,000			474,000
Inventory		561,000			486,000
Plant and equipment, net		871,000			863,000
Investment in Buisson, S.A.		395,000			431,000
Land (undeveloped)		254,000			246,000
Total assets	$	2,559,000		$	2,627,000
Liabilities and Stockholders' Equity
Accounts payable	$	384,000		$	333,000
Long-term debt		957,000			957,000
Stockholders' equity		1,218,000			1,337,000
Total liabilities and stockholders' equity	$	2,559,000		$	2,627,000

Joel de Paris, Inc. Income Statement
Sales					$	4,439,000
Operating expenses						3,817,540
Net operating income						621,460
Interest and taxes:
Interest expense	$	114,000
Tax expense		206,000				320,000
Net income					$	301,460

The company paid dividends of $182,460 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%.

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Item 4

Problem 10-15 Return on Investment (ROI) and Residual Income [LO10-1, LO10-2]

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		$	127,000
Accounts receivable		348,000			474,000
Inventory		561,000			486,000
Plant and equipment, net		871,000			863,000
Investment in Buisson, S.A.		395,000			431,000
Land (undeveloped)		254,000			246,000
Total assets	$	2,559,000		$	2,627,000
Liabilities and Stockholders' Equity
Accounts payable	$	384,000		$	333,000
Long-term debt		957,000			957,000
Stockholders' equity		1,218,000			1,337,000
Total liabilities and stockholders' equity	$	2,559,000		$	2,627,000

Joel de Paris, Inc. Income Statement
Sales					$	4,439,000
Operating expenses						3,817,540
Net operating income						621,460
Interest and taxes:
Interest expense	$	114,000
Tax expense		206,000				320,000
Net income					$	301,460

The company paid dividends of $182,460 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

3. What was the companys residual income last year?