Reference no: EM132612498
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc.
Balance Sheet
Beginning Balance Ending Balance
Assets
Cash $137,000 $128,000
Accounts receivable 340,000 483,000
Inventory 577,000 483,000
Plant and equipment, net 856,000 856,000
Investment in Buisson, S.A. 406,000 429,000
Land (undeveloped) 248,000 247,000
Total assets $2,564,000 $2,626,000
Liabilities and Stockholders' Equity Accounts payable $389,000 $343,000
Long-term debt 951,000 951,000
Stockholders' equity 1,224,000 1,332,000
Total liabilities and stockholders' equity $2,564,000 $2,626,000
Joel de Paris, Inc.
Income Statement Sales $4,246,000
Operating expenses 3,524,180
Net operating income 721,820
Interest and taxes:
Interest expense$112,000
Tax expense 195,000
307,000
Net income $414,820
The company paid dividends of $306,820 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%.
Question 1) How would Compute the company's average operating assets for last year
Question 2) How would Compute the company's margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
Question 3) How would figure out what the company's residual income last year?