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

Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	129,000	$	136,000
Accounts receivable		344,000		481,000
Inventory		577,000		471,000
Plant and equipment, net		850,000		852,000
Investment in Buisson, S.A.		398,000		432,000
Land (undeveloped)		250,000		252,000
Total assets	$	2,548,000	$	2,624,000
Liabilities and Stockholders' Equity
Accounts payable	$	385,000	$	339,000
Long-term debt		950,000		950,000
Stockholders' equity		1,213,000		1,335,000
Total liabilities and stockholders' equity	$	2,548,000	$	2,624,000

Joel de Paris, Inc. Income Statement
Sales		$	4,032,000
Operating expenses			3,346,560
Net operating income			685,440
Interest and taxes:
Interest expense	$ 123,000
Tax expense	196,000		319,000
Net income		$	366,440

The company paid dividends of $244,440 last year. The Investment in Buisson, S.A., on the balance sheet represents an investment in the stock of another company.

1.

Compute the companys margin, turnover, and return on investment (ROI) for last year. (Round your answers to 2 decimal places.)

Margin		%
Turnover
ROI		%

2.

The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 19%. What was the companys residual income last year?

Net operating income
Minimum required return
Residual income