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 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 139,000 339,000 562,000 880,000 405,000 248,000 $ 2,573,000 $ 137,000 486,000 489,000 848,000 432,000 249,000 $ 2,641,000 $ 373,000 1,044,000 1,156,000 $ 2,573,000 $ 332,000 1,044,000 1,265,000 $ 2,641,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 128,000 Tax expense 192,000 Net income $ 4,268,000 3,585, 120 682,880 320,000 362,880 $ The company paid dividends of $253,880 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 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 2 % Average operating assets Margin Turnover ROI % 3 Residual income Problem 11-19 (Algo) Comparison of Performance Using Return on Investment (ROI) (LO11-1) Comparative data on three companies in the same service industry are given below. Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company B $ 3,960,000 $ 673,200 $ 1,800,000 $ 1,196,000 $ 155,480 Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) $ 3,070,000 4 % % % 2.00 % 5.20 % %