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 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 $ 127,000 337,000 579,000 857,000 397,000 252,000 $ 2,549,000 Ending Balance $ 126,000 486,000 478,000 850,000 427,000 250,000 $ 2,617,000 $ 396,000 1,041,000 2,122,000 $ 2,549,000 $ 333,000 1,041,000 1,243,000 $ 2,617,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes! Interest expense $ 124,000 Tax expense 203,000 Net income $ 4,600,000 3,916,800 691,200 327,000 364,200 $ The company paid dividends of $243,200 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.) 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. 2. Average operating assets Margin Turnover % ROI % 3. Residual income