In: Accounting
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance Sheet |
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Beginning Balance |
Ending Balance |
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Assets | ||||||
Cash | $ | 126,000 | $ | 127,000 | ||
Accounts receivable | 349,000 | 490,000 | ||||
Inventory | 567,000 | 478,000 | ||||
Plant and equipment, net | 848,000 | 835,000 | ||||
Investment in Buisson, S.A. | 404,000 | 432,000 | ||||
Land (undeveloped) | 252,000 | 251,000 | ||||
Total assets | $ | 2,546,000 | $ | 2,613,000 | ||
Liabilities and Stockholders' Equity | ||||||
Accounts payable | $ | 378,000 | $ | 338,000 | ||
Long-term debt | 978,000 | 978,000 | ||||
Stockholders' equity | 1,190,000 | 1,297,000 | ||||
Total liabilities and stockholders' equity | $ | 2,546,000 | $ | 2,613,000 | ||
Joel de Paris, Inc. Income Statement |
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Sales | $ | 5,157,000 | |||||||
Operating expenses | 4,538,160 | ||||||||
Net operating income | 618,840 | ||||||||
Interest and taxes: | |||||||||
Interest expense | $ | 123,000 | |||||||
Tax expense | 191,000 | 314,000 | |||||||
Net income | $ | 304,840 | |||||||
The company paid dividends of $197,840 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?