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Problem 11-15 Return on Investment (ROI) and Residual Income (LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: ook erences Joel

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Problem 11-15 Return on Investment (ROI) and Residual Income (LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: ook erences Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash $ 131,000 $ 129,000 Accounts receivable 332,000 477,000 Inventory 566,000 486,000 Plant and equipment, net 891, 000 868,000 Investment in Buisson, 407,000 434,000 S.A. Land (undeveloped) 249, 246,000 Total assets $2,576,000 $2,640,000 Liabilities and Stockholders' Equity Accounts payable $ 385,000 $ 348,000 Long-term debt 958, 000 958,000 Stockholders' equity 1,233,000 1,334,000 Total liabilities and stockholders' equity $2,576,000 $2,640,000 Joel de Paris Inc Joel de Paris, Inc. Income Statement Sales $5,238,800 Operating 4,347,540 expenses Net operating 890,460 income Interest and taxes: Interest $114,000 expense Tax expense Net income 208,000 322, eee $ 568,460 The company paid dividends of $467,460 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 "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? income Interest and taxes: Interest $114,000 expense Tax expense Net income 208,000 322,000 $ 568,460 The company paid dividends of $467,460 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 "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1 Average operating assets Tumover ROU Residual income

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