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	$ 137,000	$ 129,000
Accounts receivable	332,000	471,000
Inventory	568,000	482,000
Plant and equipment, net	823,000	818,000
Investment in Buisson, S.A.	402,000	427,000
Land (undeveloped)	249,000	246,000
Total assets	$ 2,511,000	$ 2,573,000
Liabilities and Stockholders' Equity
Accounts payable	$ 377,000	$ 337,000
Long-term debt	953,000	953,000
Stockholders' equity	1,181,000	1,283,000
Total liabilities and stockholders' equity	$ 2,511,000	$ 2,573,000

Joel de Paris, Incorporated Income Statement
Sales		$ 3,948,000
Operating expenses		3,434,760
Net operating income		513,240
Interest and taxes:
Interest expense	$ 120,000
Tax expense	196,000	316,000
Net income		$ 197,240

The company paid dividends of $95,240 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?