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 Balance Ending Balance Canh Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-ter debt Stockholders' equity Total liabilities and stockholders' equity 139,000 330.000 575,000 856.000 407.000 250,000 $ 2,557,000 128,000 472,000 485,000 855.000 435.000 248,000 $2,623,000 372.000 1.037.000 1,148,000 $ 2,557,000 $ 348.000 1.037.000 1,238.000 $2,623,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 120,000 Tax expense 190,000 Net income $ 4,032,000 13,346,560 16857440 310,000 375, 440 The company paid dividends of $285,440 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. 2. Average operating assets Margin Turnover ROI Residual income 3