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Item 1

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		$	131,000
Accounts receivable		340,000			471,000
Inventory		565,000			479,000
Plant and equipment, net		847,000			839,000
Investment in Buisson, S.A.		406,000			431,000
Land (undeveloped)		246,000			249,000
Total assets	$	2,532,000		$	2,600,000
Liabilities and Stockholders' Equity
Accounts payable	$	390,000		$	330,000
Long-term debt		1,025,000			1,025,000
Stockholders' equity		1,117,000			1,245,000
Total liabilities and stockholders' equity	$	2,532,000		$	2,600,000

Joel de Paris, Inc. Income Statement
Sales					$	3,990,000
Operating expenses						3,511,200
Net operating income						478,800
Interest and taxes:
Interest expense	$	130,000
Tax expense		201,000				331,000
Net income					$	147,800

The company paid dividends of $19,800 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?