PROBLEM 11-17 Return on investment (ROI) and Residual income L011-1011-2 Financial data for Joul de Paris, Inc. for last year follow Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Asset Cash $ 140,000 $120,000 Accounts receivable 450,000 530.000 Inventory 320,000 380,000 Piast and equipment, set 630,000 620.000 Investment in Buisson, SA 250,000 250,000 Land (undeveloped 100.000 170.000 Total assets $2.020.000 $2.100.000 Liabilities and Stockholders' Equity Accounts payable $360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160.000 200.000 Total liabilities and stockholders' equity $2,020,000 $2,100,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $150,000 Tax expense 110.000 Net income 34,050,000 3.645.000 405,000 260.000 $ 145,000 The company paid dividendes de $15,000 last year. The "Investment in Brisson SA." on the balance sheet represents an investment in the stock of another comparty. The company's minimam required rate of nature of 15% Required: 1. Compute the company's average operating assets for last year Page 529 2. Compute the company's margin. turnover, and return on investment (ROI) for last year. (Hint: Saould you use set income or net operating income in your calculations?) 3. What was the company's residual income last year