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In: Accounting

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

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

Joel de Paris, Inc.
Balance Sheet
Beginning
Balance
Ending
Balance
Assets
Cash $ 126,000 $ 137,000
Accounts receivable 344,000 478,000
Inventory 571,000 477,000
Plant and equipment, net 809,000 798,000
Investment in Buisson, S.A. 390,000 428,000
Land (undeveloped) 247,000 250,000
Total assets $ 2,487,000 $ 2,568,000
Liabilities and Stockholders' Equity
Accounts payable $ 385,000 $ 332,000
Long-term debt 1,035,000 1,035,000
Stockholders' equity 1,067,000 1,201,000
Total liabilities and stockholders' equity $ 2,487,000 $ 2,568,000


Joel de Paris, Inc.
Income Statement
Sales $ 4,114,000
Operating expenses 3,373,480
Net operating income 740,520
Interest and taxes:
Interest expense $ 115,000
Tax expense 197,000 312,000
Net income $ 428,520


The company paid dividends of $294,520 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

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

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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000 $ 126,000 Accounts receivable 349,000 477,000 Inventory 570,000 473,000 Plant and equipment, net 864,000 874,000 Investment in Buisson, S.A. 408,000 429,000 Land (undeveloped) 253,000 254,000 Total assets $ 2,571,000 $ 2,633,000 Liabilities and Stockholders' Equity Accounts payable $ 376,000 $ 340,000 Long-term debt 1,035,000 1,035,000 Stockholders' equity 1,160,000 1,258,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 136,000 $ 134,000 Accounts receivable 336,000 471,000 Inventory 573,000 484,000 Plant and equipment, net 785,000 781,000 Investment in Buisson, S.A. 392,000 431,000 Land (undeveloped) 254,000 252,000 Total assets $ 2,476,000 $ 2,553,000 Liabilities and Stockholders' Equity Accounts payable $ 382,000 $ 349,000 Long-term debt 1,016,000 1,016,000 Stockholders' equity 1,078,000 1,188,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
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