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

Income Statement

sales 4050000

operating expenses 3645000

net operating income 405000

interest expense 150000

tax expense 110000 260000

net income 140000

The company paid dividends of $15,000 last year. the "invesatment in Buisson S.A.: on the balance sheet represents an investment in the stock of another company.

Answer (please show all work)

1. comput the companys margin, turnover, and return on investment (ROI) for last year.

2. The board of directors has set a minimum required rate of return of 15%. what is the companys residual income last year?