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

Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	131,000	$	128,000
Accounts receivable		341,000		478,000
Inventory		575,000		481,000
Plant and equipment, net		853,000		853,000
Investment in Buisson, S.A.		401,000		433,000
Land (undeveloped)		254,000		253,000
Total assets	$	2,555,000	$	2,626,000
Liabilities and Stockholders' Equity
Accounts payable	$	373,000	$	332,000
Long-term debt		1,045,000		1,045,000
Stockholders' equity		1,137,000		1,249,000
Total liabilities and stockholders' equity	$	2,555,000	$	2,626,000

Joel de Paris, Inc. Income Statement
Sales		$	4,224,000
Operating expenses			3,674,880
Net operating income			549,120
Interest and taxes:
Interest expense	128,000
Tax expense	206,000		334,000
Net income		$	215,120

The company paid dividends of $103,120 last year. The Investment in Buisson, S.A., on the balance sheet represents an investment in the stock of another company.

Required:

1. Compute the companys margin, turnover, and return on investment (ROI) for last year. (Round your answers to 1 decimal place.)

2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 16%. What was the companys residual income last year?

The company paid dividends of $103,120 last year. The "Investment Required: 1. Compute the company's margin, turnover, and return on investmer % Margin: Turnover times ROI % 2. The board of directors of Joel de Paris, Inc., has set a minimum require Net operating income Minimum required return Residual income $ 0