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Item 1

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

Joel de Paris, Incorporated Balance Sheet
	Beginning Balance	Ending Balance
Assets
Cash	$ 138,000	$ 128,000
Accounts receivable	337,000	483,000
Inventory	568,000	486,000
Plant and equipment, net	837,000	823,000
Investment in Buisson, S.A.	399,000	427,000
Land (undeveloped)	248,000	251,000
Total assets	$ 2,527,000	$ 2,598,000
Liabilities and Stockholders' Equity
Accounts payable	$ 381,000	$ 349,000
Long-term debt	960,000	960,000
Stockholders' equity	1,186,000	1,289,000
Total liabilities and stockholders' equity	$ 2,527,000	$ 2,598,000

Joel de Paris, Incorporated Income Statement
Sales		$ 4,750,000
Operating expenses		3,942,500
Net operating income		807,500
Interest and taxes:
Interest expense	$ 122,000
Tax expense	197,000	319,000
Net income		$ 488,500

The company paid dividends of $385,500 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

3. What was the companys residual income last year?