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 Ending 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 $ 132,000 348,000 566,000 834,000 395,000 253,000 $ 2,528,000 $ 137,000 470,000 477,000 836,000 425,000 253,000 $ 2,598,000 $ 377,000 1,004,000 1, 147,000 $ 2,528,000 $ 332,000 1,004,000 1, 262,000 $ 2,598,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses $ 4,750,000 4,037,500 Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 124,000 Tax expense 196,000 Net income $ 4,750,000 4,037,500 712,500 32 , . $ 392,500 The company paid dividends of $277,500 last year. The "Investment in Buisson, SA," 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 2 ROI 3. Residual income %