Financial data for Joel de Paris, Inc., for last year follow Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 620,000 Investment in Buisson, S.A. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $2,020,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable $ 360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 290,000 Total liabilities and stockholders' $2,020,000 $2,100,000 equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $150,000 Tax expense 110,000 Net income $4,050,000 3,645,000 405,000 $ 260,000 145,000 The company paid dividends of $15,000 last year. The "Investment in Buisson, SA" 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 (RON for last year. (Round "Turnover" to 1 decimal place.) 3. What was the company's residual income last year? 1. 2 Average operating assets Margin Turnover 3. Residual income