Problem 11-17 (Algo) 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 128,000 343,000 564,000 815,000 393,000 254,000 $ 2,497,000 $ 131,000 473,000 471,000 815,000 428,000 255,000 $ 2,573,000 $ 388,000 1,021,000 1,088,000 $ 2,497,000 $ 333,000 1,021,000 1,219,000 $ 2,573,000 Joel de Paris, Ine. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 110,000 Tax expense 204,000 Net income $4,862,000 4.278,560 583,440 314,000 269,440 The company paid dividends of $138,440 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%. Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 110,000 Tax expense 204,000 Net income $ 4,662,000 4,278,560 583, 440 314,000 $ 269,440 The company paid dividends of $138,440 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. (Round "Margin", "Turnover" and "Ror to 2 decimal places.) 3. What was the company's residual income last year? os 1. 2. % Average operating assets Margin Tumover ROI % 3. Residual income