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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 $ 125,000

Financial data for Joel de Paris, Incorporated, for last year follow:

Joel de Paris, Incorporated Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $ 125,000 $ 127,000
Accounts receivable 338,000 471,000
Inventory 564,000 474,000
Plant and equipment, net 873,000 868,000
Investment in Buisson, S.A. 391,000 430,000
Land (undeveloped) 249,000 250,000
Total assets $ 2,540,000 $ 2,620,000
Liabilities and Stockholders' Equity
Accounts payable $ 388,000 $ 338,000
Long-term debt 1,005,000 1,005,000
Stockholders' equity 1,147,000 1,277,000
Total liabilities and stockholders' equity $ 2,540,000 $ 2,620,000

Joel de Paris, Incorporated Income Statement
Sales $ 4,992,000
Operating expenses 4,243,200
Net operating income 748,800
Interest and taxes:
Interest expense $ 130,000
Tax expense 195,000 325,000
Net income $ 423,800

The company paid dividends of $293,800 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 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?

image text in transcribed

decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin % 2. Turnover 2. ROI % 3. Residual income

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