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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 $ 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 | $ 129,000 |
Accounts receivable | 339,000 | 482,000 |
Inventory | 571,000 | 489,000 |
Plant and equipment, net | 844,000 | 820,000 |
Investment in Buisson, S.A. | 408,000 | 433,000 |
Land (undeveloped) | 253,000 | 253,000 |
Total assets | $ 2,541,000 | $ 2,606,000 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 379,000 | $ 344,000 |
Long-term debt | 966,000 | 966,000 |
Stockholders' equity | 1,196,000 | 1,296,000 |
Total liabilities and stockholders' equity | $ 2,541,000 | $ 2,606,000 |
Joel de Paris, Incorporated Income Statement | ||
---|---|---|
Sales | $ 4,940,000 | |
Operating expenses | 4,149,600 | |
Net operating income | 790,400 | |
Interest and taxes: | ||
Interest expense | $ 119,000 | |
Tax expense | 197,000 | 316,000 |
Net income | $ 474,400 |
The company paid dividends of $374,400 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.
2. Compute the companys margin, turnover, and return on investment (ROI) for last year.
Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places.
3. What was the companys residual income last year?
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