Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2]

Financial data for Joel de Paris, Incorporated, for last year follow:

The company paid dividends of $221,820 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?

Joel de Paris, Incorporated Income Statement \begin{tabular}{lr} Sales & $4,914,000 \\ Operating expenses & 4,275,180 \\ \hline Net operating income & 638,820 \end{tabular} Interest and taxes: Interest expense Tax expense Net income \begin{tabular}{rr} $110,000 & 305,000 \\ 195,000 & $333,820 \\ \hline \end{tabular}