The company paid dividends of $$384,500$ 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:

Compute the company's average operating assets for last year.

Compute the company's margin, turnover, and return on investment $($ROI$)$ for last year. $($Do not round intermediate calculations and

round your final answers to $2$ decimal places.$)$

What was the company's residual income last year?Joel de Paris, Inc.

Balance Sheet

Beginning

Balance Ending

Balance

Assets

Cash $ $134,000$ $ $130,000$

Accounts receivable $338,000479,000$

Inventory $562,000472,000$

Plant and equipment, net $846,000839,000$

Investment in Buisson, S$.$A$.403,000428,000$

Land $($undeveloped$)252,000246,000$

Total assets $ $2,535,000$ $ $2,594,000$

Liabilities and Stockholders' Equity

Accounts payable $ $378,000$ $ $334,000$

Long$-$term debt $1,018,0001,018,000$

Stockholders' equity $1,139,0001,242,000$

Total liabilities and stockholders' equity $ $2,535,000$ $ $2,594,000$

Joel de Paris, Inc.

Income Statement

Sales $ $4,750,000$

Operating expenses $3,942,500$

Net operating income $807,500$

Interest and taxes:

Interest expense $ $116,000$

Tax expense $204,000320,000$

Net income $ $487,500$