Question
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 128,000
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 128,000 $ 133,000 Accounts receivable 332,000 475,000 Inventory 566,000 489,000 Plant and equipment, net 814,000 783,000 Investment in Buisson, S.A. 407,000 426,000 Land (undeveloped) 250,000 246,000 Total assets $ 2,497,000 $ 2,552,000 Liabilities and Stockholders' Equity Accounts payable $ 383,000 $ 331,000 Long-term debt 1,004,000 1,004,000 Stockholders' equity 1,110,000 1,217,000 Total liabilities and stockholders' equity $ 2,497,000 $ 2,552,000 Joel de Paris, Incorporated Income Statement Sales $ 4,836,000 Operating expenses 4,255,680 Net operating income 580,320 Interest and taxes: Interest expense $ 112,000 Tax expense 191,000 303,000 Net income $ 277,320 The company paid dividends of $170,320 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the companys residual income last year?
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