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 as: ets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 129,080 349,000 565,000 867,000 390,000 248,080 $ 2,548,000 $ 132,000 484,000 473, cee 861,000 432,000 251,000 $ 2,633,000 $ 379,000 1,027,eee 1,142,000 $ 2,548,000 $ 344,000 1,027,000 1,262,290 $ 2,633,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 114,000 Tax expense 203,000 Net Income $ 4,825, eee 4,149,500 675,5ee $ 317,800 358,500 lities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 379,000 1,027,000 1,142.ee $ 2,548,000 $ 344,000 1,027,880 1,262,000 $ 2,633, een Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 114,000 Tax expense 203,000 Net Income $ 4,825,00 4 149.500 675,500 317,eee 358, 580 $ The company paid dividends of $238.500 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 Average operating assets Margin 2 Income Statement Sales Operating expenses Net operating Incote Interest and taxes Interest expense $ 114,000 Tax expense 203,000 Net income $ 4,825,000 4,149,500 675,500 5 317,000 358,500 The company paid dividends of $238,500 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 (RON) 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 Margin Turnover ROU 3 Residual income %