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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 Accounts receivable
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance 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 $ 126,000 338,000 574,000 872,000 402,000 254,000 $ 2,566,000 $ 134,000 486,000 479,000 851,000 430,000 254,000 $ 2,634,000 $ 388,000 1,019,000 1,159,000 $ 2,566,000 $ 347,000 1,019,000 1,268,000 $ 2,634,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 115,000 Tax expense 203,000 Net income $ 4,246,000 3,651,560 594, 440 318,000 276,440 $ The company paid dividends of $167,440 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.) 1. 2. % Average operating assets Margin Turnover ROI Residual income % 3
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