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Financial data for Joel de Paris, Inc

Accounting

Financial data for Joel de Paris, Inc., for last year follow:

 

Joel de Paris, Inc.

Balance Sheet

 

Beginning

Balance

 

Ending

Balance

Assets

Cash

$

128,000

 

$

137,000

 

Accounts receivable

 

335,000

 

 

481,000

 

Inventory

 

562,000

 

 

479,000

 

Plant and equipment, net

 

825,000

 

 

793,000

 

Investment in Buisson, S.A.

 

393,000

 

 

431,000

 

Land (undeveloped)

 

246,000

 

 

254,000

 

Total assets

$

2,489,000

 

$

2,575,000

 

Liabilities and Stockholders' Equity

Accounts payable

$

379,000

 

$

347,000

 

Long-term debt

 

958,000

 

 

958,000

 

Stockholders' equity

 

1,152,000

 

 

1,270,000

 

Total liabilities and stockholders' equity

$

2,489,000

 

$

2,575,000

 

 

 

 

Joel de Paris, Inc.

Income Statement

 

Sales

 

 

 

 

$

4,301,000

 

Operating expenses

 

 

 

 

 

3,612,840

 

Net operating income

 

 

 

 

 

688,160

 

Interest and taxes:

 

 

 

 

 

 

 

Interest expense

$

120,000

 

 

 

 

 

Tax expense

 

203,000

 

 

 

323,000

 

Net income

 

 

 

 

$

365,160

 

 

 

 

The company paid dividends of $247,160 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?

 

 

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