Ch. 9: Problem Solving 1: Return on Investment (ROI) and Residual Income L09-1, 109-21 Ending Balance Financial data for Joel de Paris, Inc., for last year follow: Jool de Paris, Inc. Balance Sheet Beginning Balance Assets Cash $ 140,000 Accounts receivable 450,000 Inventory 320,000 Plant and equipment, net 680,000 Investment in Buisson, S.A. 250,000 Land (undeveloped) 180,000 Total assets $2,020,000 Liabilities and Stockholders' Equity Accounts payable $360,000 Long-term debt 1,500,000 Stockholders' equity 160.000 Total liabilities and stockholders' equity $2,020,000 $ 120,000 530,000 380,000 620,000 280,000 170,000 $2,100,000 $ 310,000 1,500,000 290,000 $2,100,000 Joel de Paris, Inc. Income Statement Salos Operating expenses Not operating income Interest and taxes: Interest expense Tax expense Net Income $4,050,000 3,645,000 405,000 $150,000 110,000 260.000 145,000 The company paid dividends of $15.000 last year. The "Investment in Buisson, S.A." on the balance sheet moments an invement in the cake father manu The company paid dividends of S15,000 last year. The "Investment in Buisson, S.A." on the balance sheet represents an investment in the stock of another company, Required: 1. Compute the company's margin, tumover, and return on investment (ROI) for last year. 2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 15%. What was the company's residual income last year