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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 140,000

Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $ 140,000 $ 120,000
Accounts receivable 450,000 530,000
Inventory 320,000 380,000
Plant and equipment, net 680,000 620,000
Investment in Buisson, S.A. 250,000 280,000
Land (undeveloped) 180,000 170,000
Total assets $ 2,020,000 $ 2,100,000
Liabilities and Stockholders' Equity
Accounts payable $ 360,000 $ 310,000
Long-term debt 1,500,000 1,500,000
Stockholders' equity 160,000 290,000
Total liabilities and stockholders' equity $ 2,020,000 $

2,100,000

Income Statement

sales 4050000

operating expenses 3645000

net operating income 405000

interest expense 150000

tax expense 110000 260000

net income 140000

The company paid dividends of $15,000 last year. the "invesatment in Buisson S.A.: on the balance sheet represents an investment in the stock of another company.

Answer (please show all work)

1. comput the companys margin, turnover, and return on investment (ROI) for last year.

2. The board of directors has set a minimum required rate of return of 15%. what is the companys residual income last year?

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