Reference no: EM132528520
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc.
Balance Sheet Beginning Balance Ending
BalanceAssets
Cash $130,000 $128,000
Accounts receivable 335,000 485,000
Inventory 568,000 487,000
Plant and equipment, net 897,000 870,000
Investment in Buisson, S.A. 403,000 426,000
Land (undeveloped) 246,000 252,000
Total assets $2,579,000 $2,648,000
Liabilities and Stockholders'
EquityAccounts payable $383,000 $350,000
Long-term debt 997,000 997,000
Stockholders' equity 1,199,000 1,301,000
Total liabilities and stockholders' equity $2,579,000 $2,648,000
Joel de Paris, Inc.
Income Statement
Sales $4,680,000
Operating expenses 3,931,200
Net operating income 748,800
Interest and taxes:
Interest expense $118,000
Tax expense 201,000 319,000
Net income $429,800
- The company paid dividends of $327,800 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:
Question 1. Compute the company's average operating assets for last year.
Question 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)
Question 3. What was the company's residual income last year?