Problem 10-15 (Algo) Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 Ending Balance $ 128,000 483,000 472,000 857,000 428,000 249,000 $ 2,617,000 $ 331,000 1,020,000 1,266,000 $ 382,000 1,020,000 1,156,000 $2,558,000 $ 2,617,000 Sales Operating expenses Net operating incone Interest and taxes: $110,000 199,000 Interest expense Tax expense Net income $ 4,416,000 3,665,280 750,720 309,000 $ 441,720 The company paid dividends of $331,720 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? 1. Average operating assets 2. Margin 2. Turnover % Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement $ 4,416,000 3,665,280 750,720 Sales Operating expenses Net operating income Interest and taxes: $110,000 199,000 309,000 $ 441,720 Balance Ending Balance $ 130,000 $128,000 346,000 483,000 576,000 472,000 848,000 857,000 404,000 428,000 254,000 249,000 $2,558,000 $ 2,617,000 $ 382,000 1,020,000 1,156,000 $ 2,558,000 $ 331,000 1,020,000 1,266,000 $ 2,617,000 Interest expense Tax expense Net income The company paid dividends of $331,720 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmen 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 a round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %