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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 $ 137,080
Financial data for Joel de Paris, Incorporated, for last year follow. Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 137,080 $ 126, 986 Accounts receivable 346,909 481, 980 Inventory 578,080 475, 080 Plant and equipment, net 849,080 868, 080 Investment in Buisson, S.A. 393,980 426, 980 Land (undeveloped ) 251,090 249, 090 Total assets $ 2,554,090 $ 2,625, 080 Liabilities and Stockholders' Equity Accounts payable 1 373,080 $ 344, 080 Long-term debt 995 , 080 995, 989 Stockholders' equity 1, 186, 980 1, 286, 080 Total liabilities and stockholders' equity $ 2,554,080 $ 2,625,080 Joel de Paris, Incorporated Income Statement Sales $ 4, 825, 090 Operating expenses 4, 204, 758 Net operating income 128, 250 Interest and taxes: Interest expense $ 117, 090 Tax expense 280, 098 317, 080 Net income $ 503, 250 The company paid dividends of $403,250 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 company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? * Answer is complete but not entirely correct. 1. Average operating assets $ 1,930,050 ( 2. Margin 17.00 % 2. Turnover 2.50 2. ROI 12.50 % 3. Residual income S 530,742 0
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