Problem 10-15 Return on Investment (ROl) 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 Ending 8 Balance Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets s 140,eee 450,000 320,000 680,000 250,000 120,eee 53e,000 380,e00 620,ee0 280,e00 17e,eee 18e, e00 17,00 $2,e20,eee $2,1e0,eee Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders equity $ 360, eee $ 310,eee 1, see,ee0 a,see, eee 16e,e00/90,00e $2,e20,eee $2,100,808 2 doel de Paris, Inc. Income Statement K Prev6 of 7ENext > Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: 5 $4,e5e,eee 3,645,000 485,800 Interest expense $15e,eee Tax expense 260,800 $145,eee 110,000 Net income The company paid dividends of $15,000 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. (Round Turnover" to 1 decimal place.) 3. What was the company's residual income last year? 2. Margin 2.5 Tunover RoI Next >