$20$

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Financial data for Joel de Paris, Incorporated, for last year follow:

Joel de Paris, Incorporated

Balance Sheet

Beginning Balance Ending Balance

Assets

Cash $ $139,000$ $ $128,000$

Accounts receivable $340,000484,000$

Inventory $578,000474,000$

Plant and equipment, net $813,000824,000$

Investment in Buisson, S$.$A$.401,000429,000$

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

Total assets $ $2,523,000$ $ $2,585,000$

Liabilities and Stockholders' Equity

Accounts payable $ $380,000$ $ $339,000$

Long$-$term debt $998,000998,000$

Stockholders' equity $1,145,0001,248,000$

Total liabilities and stockholders' equity $ $2,523,000$ $ $2,585,000$

Joel de Paris, Incorporated

Income Statement

Sales $ $5,103,000$

Operating expenses $4,235,490$

Net operating income $867,510$

Interest and taxes:

Interest expense $ $129,000$

Tax expense $191,000320,000$

Net income $ $547,510$

The company paid dividends of $$444,510$ last year. The $$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. $($Do not round intermediate calculations and round your final answers to $2$ decimal places.$)$

$3.$ What was the company$$s residual income last year?