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



Joel de Paris, Incorporated
Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $ 127,000 $ 135,000
Accounts receivable 349,000 484,000
Inventory 573,000 473,000
Plant and equipment, net 781,000 778,000
Investment in Buisson, S.A. 395,000 434,000
Land (undeveloped) 246,000 247,000
Total assets $ 2,471,000 $ 2,551,000
Liabilities and Stockholders' Equity
Accounts payable $ 386,000 $ 345,000
Long-term debt 1,047,000 1,047,000
Stockholders' equity 1,038,000 1,159,000
Total liabilities and stockholders' equity $ 2,471,000 $ 2,551,000



Joel de Paris, Incorporated
Income Statement
Sales $ 4,440,000
Operating expenses 3,818,400
Net operating income 621,600
Interest and taxes:
Interest expense $ 116,000
Tax expense 210,000 326,000
Net income $ 295,600

The company paid dividends of $174,600 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?