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		$	138,000
Accounts receivable		333,000			478,000
Inventory		564,000			480,000
Plant and equipment, net		892,000			864,000
Investment in Buisson, S.A.		393,000			427,000
Land (undeveloped)		247,000			251,000
Total assets	$	2,560,000		$	2,638,000
Liabilities and Stockholders' Equity
Accounts payable	$	387,000		$	335,000
Long-term debt		960,000			960,000
Stockholders' equity		1,213,000			1,343,000
Total liabilities and stockholders' equity	$	2,560,000		$	2,638,000

Joel de Paris, Inc. Income Statement
Sales					$	5,044,000
Operating expenses						4,236,960
Net operating income						807,040
Interest and taxes:
Interest expense	$	111,000
Tax expense		194,000				305,000
Net income					$	502,040

The company paid dividends of $372,040 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

3. What was the companys residual income last year?

S S 1. 2. 134,500 16.00 % Average operating assets Margin Turnover ROI Residual income % 3