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

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 Ending Balance Balance Assets Cash $ 136, 000 $ 138, 000 Accounts receivable 336, 000 490 , 000 Inventory 573 , 000 482 , 000 Plant and equipment, net 785 , 000 760 , 000 Investment in Buisson, S.A. 401, 000 425 , 000 Land (undeveloped) 247, 000 251 , 000 Total assets $ 2, 478, 000 $ 2, 546, 000 Liabilities and Stockholders' Equity Accounts payable $ 370, 000 $ 342, 000 Long-term debt 952 , 000 952 , 000 Stockholders ' equity 1, 156 , 000 1, 252 , 000 Total liabilities and stockholders' equity $ 2, 478, 000 $ 2,546, 000Joel de Paris, Incorporated Income Statement Sales $ 3,885,000 Operating expenses 3,341,100 Net Operating income 543,900 Interest and taxes: Interest expense $ 126,000 Tax expense 208,000 334,000 Net income 5 209,900 The company paid dividends of $113,900 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 of15%. 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 "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1 . Average operating assets 2.Turnover 2.R0| 3.ResMualhcome