Question
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 131,000
Financial data for Joel de Paris, Incorporated, for last year follow:
Joel de Paris, Incorporated Balance Sheet | ||
Beginning Balance | Ending Balance | |
---|---|---|
Assets | ||
Cash | $ 131,000 | $ 140,000 |
Accounts receivable | 347,000 | 482,000 |
Inventory | 572,000 | 486,000 |
Plant and equipment, net | 840,000 | 822,000 |
Investment in Buisson, S.A. | 404,000 | 428,000 |
Land (undeveloped) | 253,000 | 253,000 |
Total assets | $ 2,547,000 | $ 2,611,000 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 387,000 | $ 348,000 |
Long-term debt | 984,000 | 984,000 |
Stockholders' equity | 1,176,000 | 1,279,000 |
Total liabilities and stockholders' equity | $ 2,547,000 | $ 2,611,000 |
Joel de Paris, Incorporated Income Statement | ||
Sales | $ 4,202,000 | |
---|---|---|
Operating expenses | 3,571,700 | |
Net operating income | 630,300 | |
Interest and taxes: | ||
Interest expense | $ 120,000 | |
Tax expense | 195,000 | 315,000 |
Net income | $ 315,300 |
The company paid dividends of $212,300 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?
1. Average operating assets 2. Margin 2. Turnover % 2. ROI % 3. Residual income
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