Q2

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) 129,000 345,000 561,000 845,000 398,000 247,000 $ 135,000 489,000 489,000 807,000 433,000 248,000 $ 2,601,000 Total assets $ 2,525,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity 373,000 975,000 1,177,000 340,000 975,000 1,286,000 $ 2,601,000 $ 2,525,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 113,000 Tax expense 198,000 Net income $ 5,320,000 4,575,200 744,800 311,000 433,800 The company paid dividends of $324,800 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 company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. 2. Average operating assets Margin Turnover % ROI % 3. Residual income Comparative data on three companies in the same service industry are given below. Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.) Company A B Sales $ 4,584,000 $ 1,848,000 $ $ 258,720 Net operating income Average operating assets Margin 779,280 1,910,000 $ $ 2,750,000 % % 4% Turnover 2.30 Return on investment (ROI) % 9.80 % %