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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000

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

Joel de Paris, Incorporated Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $ 126,000 $ 138,000
Accounts receivable 333,000 488,000
Inventory 574,000 483,000
Plant and equipment, net 817,000 781,000
Investment in Buisson, S.A. 390,000 429,000
Land (undeveloped) 248,000 251,000
Total assets $ 2,488,000 $ 2,570,000
Liabilities and Stockholders' Equity
Accounts payable $ 370,000 $ 346,000
Long-term debt 1,032,000 1,032,000
Stockholders' equity 1,086,000 1,192,000
Total liabilities and stockholders' equity $ 2,488,000 $ 2,570,000

Joel de Paris, Incorporated Income Statement
Sales $ 4,114,000
Operating expenses 3,538,040
Net operating income 575,960
Interest and taxes:
Interest expense $ 118,000
Tax expense 198,000 316,000
Net income $ 259,960

The company paid dividends of $153,960 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.

3. What was the companys residual income last year?

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