HOMEWORK 0 Saved Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity 130,000 340,000 564,000 846,000 391,000 253,000 $ 2,524,000 $ 128,000 472,000 474,000 846,000 428,000 249,000 $2,597,000 $ 386, 000 996,000 1,142,000 $ 2,524,000 $ 332,000 996,000 1,269,000 $2,597,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 119,000 Tax expense 196,000 Net income $4,750,000 4,132,500 617,500 315,000 302,500 $ Financial data for Joel Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 130,000 340,000 564,000 846,000 391,000 253,000 $ 2,524,000 $ 128,000 472,000 474,000 846,000 428,000 249,000 $2,597,000 $ 386,000 996 900 1,142,1000 $ 2,524,000 $ 332,000 996,000 1,269,000 $2,597,000 Operating expenses Joel de Paris, Inc. Income Statement Sales SE Operating expenses Net operating income Interest and taxes: Interest expense $ 119,000 Tax expense 196,000 Net income $4,750,000 4,132,500 617,500 315,000 302,500 $4,750,000 4,132,500 617,500 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 119,000 196,000 315,000 302,500 $ The company paid dividends of $175,500 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. (Do not round Intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. 2. Average operating assets Margin Turnover ROI Residual income