Question
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
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 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance 132,000 $ 138,000 333,000 474,000 568,000 488,000 817,000 790,000 401,000 427,000 250,000 246,000 $ 2,501,000 $ 2,563,000 387,000 $ 349,000 979,000 979,000 1,135,000 1,235,000 $ 2,501,000 $ 2,563,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income Joel de Paris, Inc. Income Statement $ 4,675,000 4,020,500 654,500 $ 116,000 191,000 $ 307,000 347,500 The company paid dividends of $247,500 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 ROI 3. Residual income % %
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