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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$135,000 $131,000 Accounts receivable 348,000  486,000 Inventory 568,000  474,000 Plant and equipment, net 869,000  869,000 Investment in Buisson, S.A. 407,000  433,000 Land (undeveloped) 252,000  246,000 Total assets$2,579,000 $2,639,000 Liabilities and Stockholders' EquityAccounts payable$373,000 $346,000 Long-term debt 1,037,000  1,037,000 Stockholders' equity 1,169,000  1,256,000 Total liabilities and stockholders' equity$2,579,000 $2,639,000 

 

 

Joel de Paris, Inc.

Income Statement Sales    $4,850,000 Operating expenses     4,025,500 Net operating income     824,500 Interest and taxes:       Interest expense$121,000     Tax expense 192,000   313,000 Net income    $511,500  

 

The company paid dividends of $424,500 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%.

 

 

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. 

3. What was the company's residual income last year?