Question
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000 $ 131,000 Accounts receivable 331,000 471,000 Inventory 560,000 477,000 Plant and equipment, net 852,000 831,000 Investment in Buisson, S.A. 396,000 429,000 Land (undeveloped) 254,000 250,000 Total assets $ 2,520,000 $ 2,589,000 Liabilities and Stockholders' Equity Accounts payable $ 382,000 $ 330,000 Long-term debt 965,000 965,000 Stockholders' equity 1,173,000 1,294,000 Total liabilities and stockholders' equity $ 2,520,000 $ 2,589,000 Joel de Paris, Incorporated Income Statement Sales $ 4,347,000 Operating expenses 3,781,890 Net operating income 565,110 Interest and taxes: Interest expense $ 114,000 Tax expense 208,000 322,000 Net income $ 243,110 The company paid dividends of $122,110 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?
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