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

Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	128,000	$	135,000
Accounts receivable		338,000		479,000
Inventory		575,000		479,000
Plant and equipment, net		799,000		787,000
Investment in Buisson, S.A.		409,000		427,000
Land (undeveloped)		255,000		248,000
Total assets	$	2,504,000	$	2,555,000
Liabilities and Stockholders' Equity
Accounts payable	$	387,000	$	333,000
Long-term debt		1,042,000		1,042,000
Stockholders' equity		1,075,000		1,180,000
Total liabilities and stockholders' equity	$	2,504,000	$	2,555,000

Joel de Paris, Inc. Income Statement
Sales		$	4,092,000
Operating expenses			3,396,360
Net operating income			695,640
Interest and taxes:
Interest expense	110,000
Tax expense	197,000		307,000
Net income		$	388,640

The company paid dividends of $283,640 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

2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 15%. What was the companys residual income last year?

Margin Turnover RO times