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Financial data for Joel de Paris, Inc., for last year follow: Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A.
Financial data for Joel de Paris, Inc., for last year follow: Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance $ 136,000 $ 130,000 340,000 475,000 561,000 471,000 803,000 804,000 395,000 431,000 247,000 248,000 $ 2,559,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 2,482,000 $ 377,000 1,013,000 1,092,000 $ 332,000 1,013,000 1,214,000 $ 2,482,000 $ 2,559,000 Sales Joel de Paris, Inc. Income Statement Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 114,000 194,000 $ 4,650,000 3,906,000 744,000 308,000 $ 436,000 The company paid dividends of $314,000 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin % Turnover 3. ROI Residual income %
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