Financial data for Joel de Paris Inc. for last year follow:

The company paid dividends of $15,000 last year. The ?Investment in Buisson, S.A.? on the balance sheet represents an investment in the shares of another company.

Required:

1. Compute the company?s margin, turnover, and ROI for last year.

2. The board of directors of Joel de Paris Inc. has set a minimum required return of 15%. What was the company?s residual income last year?

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JOEL DE PARIS INC. Balance Sheet Ending Balance Beginning Balance Assets $ 120,000 $ 140,000 Cash Accounts receivable 530,000 450,000 320,000 Inventory 380,000 Plant and equipment, net 620,000 680,000 Investment in Buisson, S.A. 280,000 250,000 Land (undeveloped) 170,000 180.000 $2,100,000 Total assets $2,020,000 Liabilities and Shareholders' Equity $ 310,000 $ 360,000 Accounts payable Long-term debt 1,500,000 1,500,000 Shareholders' equity 160,000 290,000 Total liabilities and shareholders' equity $2,020,000 $2,100,000 JOEL DE PARIS INC. Income Statement Sales $4,050,000 Less: Operating expenses 3,645,000 Net operating income 405,000 Less: Interest and taxes: $ 150,000 Interest ex pense Тах еxpense 110,000 260,000 $ 145,000 Net income