Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S. A. Land (undeveloped) Total assets $ 130,000 $125,000 471,000 484,000 870,000 434,000 250,000 $ 2,562,000 2,634,000 341,000 562,000 877,000 399,000 253,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 383,000 336,000 1,018,000 1,280,000 $ 2,562,000 2,634,000 1,018,000 1,161,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: $ 5,404,000 4,593,400 810,600 Interest expense Tax expense ş 114,000 209,000 323,000 $ 487,600 Net income The company paid dividends of $368,600 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 (ROl) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)
3. What was the company's residual income last year?

1. $1,930,000

2. Margin = 15%

Turnover = $2.8

Return on investment = 42%

3. $521,100

Explanation:

1. The computation of average operating assets for last year is shown below:-

Average operating assets = (Beginning operating assets + Ending operating assets) ÷ 2

= ($2,562,000 - $399,000 - $253,000) + ($2,634,000 - $434,000 - $250,000) ÷ 2

= ($1,910,000 + $1,950,000) ÷ 2

= $3,860,000 ÷ 2

= $1,930,000

2. The computation of company's margin, turnover, and return on investment is shown below:-

Margin = Net operating income ÷ Sales

= $810,600 ÷ $5,404,000

= 15%

Turnover = Sales ÷ Average operating assets

= $5,404,000 ÷ $1,930,000

= $2.8

Return on investment = Margin × Turnover

= 15% × $2.8

= 42%

3. The computation of residual income last year is shown below:-

Residual income last year = Net operating income - Minimum required return

= $810,600 - ($1,930,000 × 15%)

= $810,600 - $289,500

= $521,100

So, we have applied the above formula.

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.