Problem $10-15($Algo$)$ Return on Investment $($ROI$)$ and Residual Income $[$LO$10-1,$ LO$10-2]$

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

Joel de Paris, Incorporated

Balance Sheet

Beginning Balance Ending Balance

Assets

Cash $ $129,000$ $ $129,000$

Accounts receivable $332,000489,000$

Inventory $572,000470,000$

Plant and equipment, net $857,000842,000$

Investment in Buisson, S$.$A$.390,000429,000$

Land $($undeveloped$)254,000248,000$

Total assets $ $2,534,000$ $ $2,607,000$

Liabilities and Stockholders' Equity

Accounts payable $ $378,000$ $ $339,000$

Long$-$term debt $1,042,0001,042,000$

Stockholders' equity $1,114,0001,226,000$

Total liabilities and stockholders' equity $ $2,534,000$ $ $2,607,000$

Joel de Paris, Incorporated

Income Statement

Sales $ $4,966,000$

Operating expenses $4,270,760$

Net operating income $695,240$

Interest and taxes:

Interest expense $ $119,000$

Tax expense $199,000318,000$

Net income $ $377,240$

The company paid dividends of $$265,240$ last year. The $$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 company$$s 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 company$$s residual income last year?Problem $10-15($Algo$)$ Return on Investment $($ROI$)$ and Residual Income $[$LO$10-1,$ LO$10-2]$

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

The company paid dividends of $$265,240$ last year. The "Investment in Bulsson, S$.$A$."$ on the balance sheet represents an investment

in the stock of another company. The company's minimum required rate of return of $15\%.$

Requlred:

Compute the company's average operating assets for last year.

Compute the company's margin, turnover, and return on investment $($ROI$)$ for last year. $($Do not round intermedlate calculatlons and

round your final answers to $2$ decimal places.$)$

What was the company's residual income last year?