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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable

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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity 139,000 334,000 574,000 833,000 391,000 253,000 $ 2,524,000 $ 130,000 476,000 481,000 833,000 427,000 253,000 $ 2,600,000 383,000 952,000 1,189,000 $ 2,524,000 331,000 952,000 1,317,000 $ 2,600,000 RE Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 127,000 Tax expense 196,000 Net income $ 4,180,000 3,511,200 668,800 323,000 345,800 $ The company paid dividends of $217,800 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%. Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 127,000 Tax expense 196,000 Net income $ 4,180,000 3,511,200 668,800 323,000 345,800 $ The company paid dividends of $217,800 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. (Do not round Intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. 2. % Average operating assets Margin Turnover ROI Residual income % % 3

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