Problem 10-15 Return on Investment (ROI) and Residual Income (L010-1, LO10-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash $ 126,000 $ 131,000 Accounts receivable 347,000 480,000 Inventory 579,000 474,000 Plant and equipment, net 778,000 785,000 Investment in Buisson, S.A. 402,000 428,000 Land (undeveloped) 251,800 250,000 Total assets $ 2,483,000 $ 2,548,800 Liabilities and Stockholders' Equity Accounts payable $ 378,000 $ 344,000 Long-term debt 1,032,000 1,032,000 Stockholders' equity 1,073,000 1,172,000 Total liabilities and stockholders' equity $ 2,483,800 52,548,800 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 128,000 Tax expense 191,000 Net income $ 4,070,000 3,581,600 488,400 $ 319,080 169,400 The company paid dividends of $70,400 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 Turnover ROU 3 Residual income %