Problem 10-15 Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc Balance Sheet Beginning Balance Ending Balance Assets Cash S 136,000 334,000 576,000 824,000 139,000 483,000 477,000 811,000 430,000 250,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 392,000 250,000 $ 2,590,000 2,512,000 Total assets Liabilities and Stockholders' Equity Accounts able 381,000 334,000 952,000 1,304,000 Long-term debt Stockholders' equity 952,000 1,179,000 $2,512,000 $ 2,590,000 Total liabilities and stockholders' equity Joel de Paris, Inc Income Statement 5,103,000 4,235,490 Sales Operating expenses Net operating income Interest and taxes Interest expense 867,510 116,000 317,000 201.000 xpense 550,510 Net income The company paid dividends of $425,510 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? Average operating assets 1 2. Margin Turnover ROL Residual income 3 Problem 10-17 Comparison of Performance Using Return on Investment (ROI) [LO10-1] Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company A B C $ 4,114,000 Sales 2,224,000 Net operating income S 534,820 289,120 Average operating assets $ 2,420,000 3,380,000 Margin % 4% % Turnover 2.50 10.40 % Return on investment (ROI) % %