Problem $11-17($Algo$)$ Return on Investment $($ROI$)$ and Residual Income $[$LO$11-1,$ LO$11-2]$

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

Joel de Paris, Incorporated

Balance Sheet

Beginning Balance Ending Balance

Assets

Cash $ $130,000$ $ $128,000$

Accounts receivable $332,000490,000$

Inventory $572,000478,000$

Plant and equipment, net $826,000804,000$

Investment in Buisson, S$.$A$.409,000426,000$

Land $($undeveloped$)253,000248,000$

Total assets $ $2,522,000$ $ $2,574,000$

Liabilities and Stockholders' Equity

Accounts payable $ $377,000$ $ $350,000$

Long$-$term debt $1,040,0001,040,000$

Stockholders' equity $1,105,0001,184,000$

Total liabilities and stockholders' equity $ $2,522,000$ $ $2,574,000$

Joel de Paris, Incorporated

Income Statement

Sales $ $4,888,000$

Operating expenses $4,203,680$

Net operating income $684,320$

Interest and taxes:

Interest expense $ $113,000$

Tax expense $205,000318,000$

Net income $ $366,320$

The company paid dividends of $$287,320$ last year. The $$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. $($Round "Margin", "Turnover" and "ROI" to $2$ decimal places.$)$

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