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

Joel de Paris, Inc.

Balance SheetBeginning

BalanceEnding

Balance

Assets

Cash$128,000$133,000

Accounts receivable330,000477,000

Inventory572,000477,000

Plant and equipment, net810,000793,000

Investment in Buisson, S.A.391,000427,000

Land (undeveloped)252,000250,000Total assets$2,483,000$2,557,000

Liabilities and Stockholders' Equity

Accounts payable$374,000$334,000

Long-term debt1,048,0001,048,000

Stockholders' equity1,061,0001,175,000

Total liabilities and stockholders' equity$2,483,000$2,557,000

Joel de Paris, Inc.

Income Statement

Sales$4,836,000

Operating expenses4,062,240

Net operating income773,760

Interest and taxes:

Interest expense$124,000

Tax expense198,000322,000

Net income$451,760

The company paid dividends of $337,760 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 company's margin, turnover, and return on investment (ROI) for last year.

3. What was the company's residual income last year?