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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Assets Cash Accounts receivable Inventory Plant and equipment, net
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Assets Cash Accounts receivable Inventory Plant and equipment, net Balance Sheet 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, Incorporated Beginning Balance Ending Balance $ 129,000 $ 138,000 334,000 572,000 865,000 402,000 477,000 487,000 838,000 430,000 249,000 254,000 $ 2,556,000 $ 372,000 1,038,000 1,146,000 $ 2,556,000 $ 2,619,000 $ 339,000 1,038,000 1,242,000 $ 2,619,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 124,000 195,000 $ 4,992,000 4,243,200 748,800 319,000 $ 429,800 The company paid dividends of $333,800 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: 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year?
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