Financial data for Joel de Paris, Inc

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

Joel de Paris, Inc. Balance Sheet
	Beginning Balance			Ending Balance
Assets
Cash	$	127,000		$	137,000
Accounts receivable		345,000			482,000
Inventory		576,000			483,000
Plant and equipment, net		812,000			798,000
Investment in Buisson, S.A.		405,000			431,000
Land (undeveloped)		249,000			252,000
Total assets	$	2,514,000		$	2,583,000
Liabilities and Stockholders' Equity
Accounts payable	$	375,000		$	332,000
Long-term debt		959,000			959,000
Stockholders' equity		1,180,000			1,292,000
Total liabilities and stockholders' equity	$	2,514,000		$	2,583,000

 

Joel de Paris, Inc. Income Statement
Sales					$	4,700,000
Operating expenses						3,995,000
Net operating income						705,000
Interest and taxes:
Interest expense	$	120,000
Tax expense		193,000				313,000
Net income					$	392,000

The company paid dividends of $280,000 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?