Financial data for Joel de Paris plc for last year follow:

The company paid dividends of £15,000 last year. The ‘Investment in Buisson’ on the balance sheet represents an investment in the shares of another company.

Required
1. Compute the company’s margin, turnover and ROI for last year.
2. The board of directors of Joel de Paris plc has set a minimum required return of 15%. What was the company’s residual income last year?

Transcribed Image Text:

Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson SA Land (undeveloped) Total assets Joel de Paris plc Balance sheet Ending balance 120,000 530,000 380,000 620,000 280,000 170,000 2,100,000 Beginning balance 140,000 450,000 320,000 680,000 250,000 180,000 2,020,000