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Financial data for Joel de Paris, Inc

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

 

Joel de Paris, Inc.

Balance Sheet Beginning

Balance Ending

BalanceAssetsCash$138,000 $135,000 Accounts receivable 338,000  478,000 Inventory 561,000  477,000 Plant and equipment, net 883,000  870,000 Investment in Buisson, S.A. 406,000  427,000 Land (undeveloped) 250,000  249,000 Total assets$2,576,000 $2,636,000 Liabilities and Stockholders' EquityAccounts payable$387,000 $336,000 Long-term debt 1,012,000  1,012,000 Stockholders' equity 1,177,000  1,288,000 Total liabilities and stockholders' equity$2,576,000 $2,636,000 

 

 

Joel de Paris, Inc.

Income Statement Sales    $4,656,000 Operating expenses     3,864,480 Net operating income     791,520 Interest and taxes:       Interest expense$110,000     Tax expense 191,000   301,000 Net income    $490,520  

 

The company paid dividends of $379,520 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?