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	$	139,000		$	133,000
Accounts receivable		335,000			476,000
Inventory		563,000			487,000
Plant and equipment, net		823,000			804,000
Investment in Buisson, S.A.		400,000			431,000
Land (undeveloped)		247,000			254,000
Total assets	$	2,507,000		$	2,585,000
Liabilities and Stockholders' Equity
Accounts payable	$	382,000		$	347,000
Long-term debt		983,000			983,000
Stockholders' equity		1,142,000			1,255,000
Total liabilities and stockholders' equity	$	2,507,000		$	2,585,000

Joel de Paris, Inc. Income Statement
Sales					$	3,948,000
Operating expenses						3,395,280
Net operating income						552,720
Interest and taxes:
Interest expense	$	119,000
Tax expense		191,000				310,000
Net income					$	242,720

The company paid dividends of $129,720 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?