Financial data for Joel de Paris, Incorporated, for last year follow:

Joel de Paris, Incorporated

Balance Sheet

Beginning BalanceEnding Balance

Assets

Cash$ 136,000$ 133,000

Accounts receivable335,000488,000

Inventory572,000490,000

Plant and equipment, net797,000769,000

Investment in Buisson, S.A.410,000430,000

Land (undeveloped)248,000248,000

Total assets$ 2,498,000$ 2,558,000

Liabilities and Stockholders' Equity

Accounts payable$ 388,000$ 334,000

Long-term debt1,020,0001,020,000

Stockholders' equity1,090,0001,204,000

Total liabilities and stockholders' equity$ 2,498,000$ 2,558,000

Joel de Paris, Incorporated

Income Statement

Sales $ 4,650,000

Operating expenses 3,859,500

Net operating income 790,500

Interest and taxes:

Interest expense$ 128,000

Tax expense202,000330,000

Net income $ 460,500

The company paid dividends of $346,500 last year. The Investment in Buisson, S.A., 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

3. What was the companys residual income last year?

Financial data for Joel de Paris, Incorporated for last year follow Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 136,000 $ 133,000 Accounts receivable 335,000 483,000 Inventory 572,000 490,000 Plant and equipment, net 797,000 769,000 Investment in Buisson, S.A 430,000 Land (undeveloped) 245,000 248.000 Total assets $ 2,490,000 $ 2,555,000 Liabilities and Stockholders' Equity Accounts payable $ 380,000 5334,00 Long-term debt 1,020,000 1,020.000 Stockholders' equity 1.000.000 $ 2,490,000 5 2.558,000 Total 1sabilities and stockholderst equity 410,000 120,000 $ 4,650,000 3,859 500 Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes Interest expense $ 128,00 Tax expense 202,000 Net Income 330,000 5460, 500 The company paid dividends of $346.500 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 $ 4,650,000 3,859 580 790, 500 Joel de Paris, Incorporated Incore Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 128,000 Tax expense 202,800 Net Income 330,000 $ 460,580 The company paid dividends of $346,500 last year. The "Investment in Bulsson, 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 "Margin", "Turnover" and "Ror" to 2 decimal places.) 3. What was the company's residual income last year? % 1 Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income %