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: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory 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 $ 127,000 337,000 576,000 890,000 410,000 245,000 $ 2,585,000 $ 125,000 472,000 478,000 895,000 434,000 252,000 $ 2,656,000 $ 385,000 954,000 1,246,000 $ 2,585,000 $ 340,000 954,000 1,362,000 $ 2,656,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes Interest expense $ 115,000 Tax expense 194,000 Net income $ 4,875,000 3,997,500 877,500 309,000 568,500 $ The company paid dividends of $452,500 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: Long- CUL Stockholders' equity Total liabilities and stockholders' equity 3,Vuu 1,246,000 $ 2,585,000 Vuu 1,362,000 $ 2,656,000 Joel de Paris, Ine. Income Statement Sales Operating expenses Net operating income Interest and taxes Interest expense $ 115,000 Tax expense 194,000 Net income $ 4,875,000 3,997,500 877,500 309,000 568,500 The company paid dividends of $452,500 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. 2 % Average operating assets Margin Turnover ROI Residual income % 3