Q3CH11....

Problem 11-15 (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 Ending Balance Balance Assets Cash $ 137,000 S 127,000 Accounts receivable 337,000 478,000 Inventory 561, 000 471,000 Plant and equipment, net 815,000 814,000 Investment in Buisson, S.A. 405,000 428,000 Land (undeveloped) 251,000 249,000 Total assets $ 2, 506, 000 $ 2, 567,000 Liabilities and Stockholders' Equity Accounts payable $ 378, 000 S 336,000 Long-term debt 967,000 967,000 Stockholders' equity 1, 161,000 1, 264,000 Total liabilities and stockholders' equity $ 2, 506, 000 $ 2, 567, 000 Joel de Paris, Inc. Income Statement Sales $ 4, 301, 000 Operating expenses 3, 526, 820 Net operating income 774, 180 Interest and taxes: Interest expense $ 126,000 Tax expense 191,000 317, 000 Net income 457, 180 The company paid dividends of $354,180 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?