The company paid dividends of $260,820 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 companys margin, turnover, and return on investment (ROI) for last year.

3. What was the companys residual income last year?

1- Average Operating Assets
2- Margin		%
Turnover
ROI		%
3- Residual Income

Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets $ 125,000 339,000 567,000 879,000 400,000 Cash 131,000 482,000 Accounts receivable 476,000 861,000 429,000 252,000 Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 245,000 Total assets 2,555,000 2,631,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity $ 340,000 1,041,000 1,250,000 388,000 1,041,000 1,126,000 Total liabilities and stockholders' equity 2,631,000 2,555,000 Joel de Paris, Inc. Income Statement Sales 4,246,000 3,524,180 721,820 Operating expenses Net operating income Interest and taxes: Interest expense 130,000 207,000 xpens 337,000 384,820 Net income +A