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 $ 135,000 $ 131,000 Accounts receivable 338,000 487,000 Inventory 577,000 489,000 Plant and equipment, net 840,000 823,000 Investment in Buisson, S.A. 408,000 427,000 Land (undeveloped) 250,000 245,000 Total assets $ 2,548,000 $ 2,602,000 Liabilities and Stockholders' Equity Accounts payable $ 373,000 $ 345,000 Long-term debt 1,016,000 1,016,000 Stockholders' equity 1,159,000 1,241,000 Total liabilities and stockholders' equity $ 2,548,000 $ 2,602,000 Joel de Paris, Inc. Income Statement Sales $ 4,966,000 Operating expenses 4,072,120 Net operating income 893,880 Interest and taxes: Interest expense $ 116,000 Tax expense 200,000 316,000 Net income $ 577,880 The company paid dividends of $495,880 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the companys residual income last year?

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 $ 135,000 131,000 487,000 489,000 823,000 427,000 245,000 $ 2,548,000 2,602,000 338,000 577,000 840,000 408,000 250,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders equity $ 373,000 345,000 1,016,000 1,241,000 $ 2,548,000 2,602,000 1,016,000 1,159,000