Question
inancial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000
inancial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000 $ 129,000 Accounts receivable 347,000 474,000 Inventory 575,000 476,000 Plant and equipment, net 801,000 811,000 Investment in Buisson, S.A. 400,000 433,000 Land (undeveloped) 247,000 248,000 Total assets $ 2,497,000 $ 2,571,000 Liabilities and Stockholders' Equity Accounts payable $ 386,000 $ 339,000 Long-term debt 1,035,000 1,035,000 Stockholders' equity 1,076,000 1,197,000 Total liabilities and stockholders' equity $ 2,497,000 $ 2,571,000 Joel de Paris, Inc. Income Statement Sales $ 4,862,000 Operating expenses 4,181,320 Net operating income 680,680 Interest and taxes: Interest expense $ 124,000 Tax expense 199,000 323,000 Net income $ 357,680 The company paid dividends of $236,680 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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