PROBLEM $11-17$ Retum on Investment $($ROI$)$ and Residual Income $($G$)$ LO$11-1,()$ LO$11-2$

Financial data for Joel de Paris, Inc, for last jear follow:

The company paid dividends of $$15,000$ last year. The "Investment in Buisson. S$.$A$.,"$ on the balance sheat represents an irvestment in the

stock of another company: The company's minimum required rate of returm of $15\%.$

Required:

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

Compute the company's margin, turnover, and return on imvestment $($ROI$)$ for last year. $($Hint: Should you use nat incoma or

net operating income in your calculations?$)$

What was the company's residual income last year?