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:

Joel de Paris, Incorporated Balance Sheet
	Beginning Balance	Ending Balance
Assets
Cash	$ 135,000	$ 128,000
Accounts receivable	335,000	475,000
Inventory	575,000	478,000
Plant and equipment, net	805,000	809,000
Investment in Buisson, S.A.	404,000	434,000
Land (undeveloped)	248,000	249,000
Total assets	$ 2,502,000	$ 2,573,000
Liabilities and Stockholders' Equity
Accounts payable	$ 383,000	$ 335,000
Long-term debt	960,000	960,000
Stockholders' equity	1,159,000	1,278,000
Total liabilities and stockholders' equity	$ 2,502,000	$ 2,573,000

Joel de Paris, Incorporated Income Statement
Sales		$ 4,675,000
Operating expenses		3,973,750
Net operating income		701,250
Interest and taxes:
Interest expense	$ 121,000
Tax expense	206,000	327,000
Net income		$ 374,250

The company paid dividends of $255,250 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?