Financial data for Joel de Paris, Inc., for last year follow:Joel de Paris, Inc. Balance Sheet Beginning Balance Ending BalanceAssets Cash $ 128,000 $ 128,000 Accounts receivable 333,000 490,000Inventory 579,000 475,000 Plant and equipment, net 870,000 857,000Investment in Buisson, S.A. 410,000 432,000 Land (undeveloped)249,000 246,000 Total assets $ 2,569,000 $ 2,628,000 Liabilitiesand Stockholders' Equity Accounts payable $ 371,000 $ 337,000Long-term debt 981,000 981,000 Stockholders' equity 1,217,0001,310,000 Total liabilities and stockholders' equity $ 2,569,000 $2,628,000
Joel de Paris, Inc. Income Statement Sales $ 5,211,000 Operatingexpenses 4,481,460 Net operating income 729,540 Interest and taxes:Interest expense $ 115,000 Tax expense 201,000 316,000 Net income $413,540
The company paid dividends of $320,540 last year. The“Investment in Buisson, S.A.,” on the balance sheet represents aninvestment in the stock of another company. The company's minimumrequired rate of return of 15%. Required: 1. Compute the company'saverage operating assets for last year. 2. Compute the company’smargin, turnover, and return on investment (ROI) for last year.(Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. Whatwas the company’s residual income last year?
