Financial data for Joel de Paris, Inc., for last year follow:
The company paid dividends of $283,640 last year. The “Investment in Buisson, S.A.,” on the balance sheet represents an investment in the stock of another company.
(1) Compute the company’s margin, turnover, and return on investment (ROI) for the 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?