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

Joel de Paris, Inc. Balance Sheet

Beginning Balance

Ending Balance

Assets

Cash

$

139,000

$

126,000

Accounts receivable

334,000

486,000

Inventory

573,000

480,000

Plant and equipment, net

784,000

778,000

Investment in Buisson, S.A.

406,000

427,000

Land (undeveloped)

245,000

254,000

Total assets

$

2,481,000

$

2,551,000

Liabilities and Stockholders' Equity

Accounts payable

$

373,000

$

337,000

Long-term debt

1,045,000

1,045,000

Stockholders' equity

1,063,000

1,169,000

Total liabilities and stockholders' equity

$

2,481,000

$

2,551,000

Joel de Paris, Inc. Income Statement

Sales

$

3,885,000

Operating expenses

3,379,950

Net operating income

505,050

Interest and taxes:

Interest expense

$ 128,000

Tax expense

191,000

319,000

Net income

$

186,050

The company paid dividends of $80,050 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 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 18%. What was the companys residual income last year?

Net operating income
Minimum required return
Residual income