Question
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000 $ 132,000 Accounts receivable 331,000 477,000 Inventory 579,000 486,000 Plant and equipment, net 854,000 835,000 Investment in Buisson, S.A. 401,000 432,000 Land (undeveloped) 246,000 248,000 Total assets $ 2,537,000 $ 2,610,000 Liabilities and Stockholders' Equity Accounts payable $ 380,000 $ 348,000 Long-term debt 1,042,000 1,042,000 Stockholders' equity 1,115,000 1,220,000 Total liabilities and stockholders' equity $ 2,537,000 $ 2,610,000 Joel de Paris, Incorporated Income Statement Sales $ 4,202,000 Operating expenses 3,613,720 Net operating income 588,280 Interest and taxes: Interest expense $ 115,000 Tax expense 206,000 321,000 Net income $ 267,280 The company paid dividends of $162,280 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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