The company paid dividends of $388,080 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%.

Q:

Ending Balance Joel de Paris, Incorporated Balance Sheet Beginning Balance Assets Cash $ 128,000 Accounts receivable 342,000 Inventory 578,000 Plant and equipment, net 872,000 Investment in Buisson, S.A. 405,000 Land (undeveloped) 248,000 Total assets $ 2,573,000 Liabilities and Stockholders' Equity Accounts payable $ 381,000 Long-term debt 962,000 Stockholders' equity 1,230,000 Total liabilities and stockholders' equity $ 2,573,000 $ 128,000 471,000 483,000 878,000 435,000 248,000 $ 2,643,000 $ 331,000 962,000 1,350,000 $ 2,643,000 Joel de Paris, Incorporated Income Statement Sales $ 5,238,000 Operating expenses 4,399,920 Net operating income 838,080 Interest and taxes: Interest expense $ 127,000 Tax expense 203,000 330,000 Net income $ 508,080 1. Average operating assets 2. Margin % 2. Turnover 2. ROI % 3. Residual income