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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 139,000
Financial data for Joel de Paris, Incorporated, for last year follow:
Joel de Paris, Incorporated Balance Sheet | ||
---|---|---|
Beginning Balance | Ending Balance | |
Assets | ||
Cash | $ 139,000 | $ 139,000 |
Accounts receivable | 331,000 | 471,000 |
Inventory | 577,000 | 475,000 |
Plant and equipment, net | 803,000 | 805,000 |
Investment in Buisson, S.A. | 401,000 | 432,000 |
Land (undeveloped) | 250,000 | 253,000 |
Total assets | $ 2,501,000 | $ 2,575,000 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 383,000 | $ 331,000 |
Long-term debt | 1,008,000 | 1,008,000 |
Stockholders' equity | 1,110,000 | 1,236,000 |
Total liabilities and stockholders' equity | $ 2,501,000 | $ 2,575,000 |
Joel de Paris, Incorporated Income Statement | ||
---|---|---|
Sales | $ 4,301,000 | |
Operating expenses | 3,698,860 | |
Net operating income | 602,140 | |
Interest and taxes: | ||
Interest expense | $ 119,000 | |
Tax expense | 198,000 | 317,000 |
Net income | $ 285,140 |
The company paid dividends of $159,140 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 15%.
Required:
Compute the company's average operating assets for last year.
Compute the companys margin, turnover, and return on investment (ROI) for last year.
- Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places.
What was the companys residual income last year?
\begin{tabular}{|l|l|l|} \hline 1. Average operating assets & & \\ \hline 2. Margin & & % \\ \hline 2. Turnover & & \\ \hline 2. ROI & & % \\ \hline 3. Residual income & & \\ \hline \end{tabular}Step by Step Solution
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