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

Joel de Paris, Inc.

Balance Sheet

Beginning

Balance Ending

Balance

Assets

Cash $ 132,000 $ 133,000

Accounts receivable 331,000 484,000

Inventory 567,000 483,000

Plant and equipment, net 890,000 860,000

Investment in Buisson, S.A. 402,000 431,000

Land (undeveloped) 247,000 245,000

Total assets $ 2,569,000 $ 2,636,000

Liabilities and Stockholders' Equity

Accounts payable $ 388,000 $ 335,000

Long-term debt 1,017,000 1,017,000

Stockholders' equity 1,164,000 1,284,000

Total liabilities and stockholders' equity $ 2,569,000 $ 2,636,000

Joel de Paris, Inc.

Income Statement

Sales $ 3,880,000

Operating expenses 3,336,800

Net operating income 543,200

Interest and taxes:

Interest expense 124,000

Tax expense 208,000 332,000

Net income $ 211,200

The company paid dividends of $91,200 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 1 decimal place.)

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?