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Financial data for Joel de Paris Inc. for last year follow: JOEL DE PARIS INC. Balance Sheet Ending Balance Beginning Balance Assets Cash $ 120,000

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

JOEL DE PARIS INC.
Balance Sheet
Ending Balance Beginning Balance
Assets
Cash $ 120,000 $ 140,000
Accounts receivable 530,000 450,000
Inventory 380,000 320,000
Plant and equipment, net 620,000 680,000
Investment in Buisson, S.A. 280,000 250,000
Land (undeveloped) 170,000 180,000
Total assets $ 2,100,000 $ 2,020,000
Liabilities and Shareholders Equity
Accounts payable $ 310,000 $ 360,000
Long-term debt 1,500,000 1,500,000
Shareholders equity 290,000 160,000
Total liabilities and shareholders equity $ 2,100,000 $ 2,020,000

JOEL DE PARIS INC.
Income Statement
Sales $ 4,050,000
Less: Operating expenses 3,645,000
Net operating income 405,000
Less: Interest and taxes:
Interest expense $ 150,000
Tax expense 110,000 260,000
Net income $ 145,000

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

Required: 1. Compute the companys margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round "Turnover" answer to 1 decimal place.)

2. The board of directors of Joel de Paris Inc. has set a minimum required return of 15%. What was the companys residual income last year?

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