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: Assets Cash Accounts receivable Inventory Joel de Paris, Inc. Balance Sheet Beginning Balance 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, Inc. Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 4,675,000 3,880,250 794,750 $ 128,000 210,000 $ 338,000 456,750 Ending Balance $ 135,000 $ 126,000 333,000 569,000 484,000 474,000 813,000 402,000 246,000 806,000 433,000 255,000 $ 2,498,000 $ 2,578,000 $ 390,000 $ 1,036,000 1,072,000 343,000 1,036,000 1,199,000 $ 2,498,000 $ 2,578,000 The company paid dividends of $329,750 last year. The "Investment In Bulsson, 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? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 3. Turnover ROI Residual income $ 1,870,000 17.00 4.70 x 96 79.90 % $ 3,740,000 x)