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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Assets Cash Accounts receivable Inventory Plant and equipment, net
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Assets Cash Accounts receivable Inventory Plant and equipment, net Balance Sheet Beginning Balance Ending Balance $ 135,000 $ 126,000 338,000 485,000 563,000 487,000 804,000 782,000 400,000 428,000 254,000 251,000 Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 2,494,000 $ 378,000 954,000 1,162,000 $ 2,559,000 $ 341,000 954,000 1,264,000 $ 2,494,000 $ 2,559,000 Joel de Paris, Incorporated Income Statement Sales $ 4,092,000 Operating expenses Net operating income 3,560,040 531,960 Interest and taxes: $ 116,000 206,000 322,000 $ 209,960 Interest expense Tax expense Net income The company paid dividends of $107,960 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? 1. Average operating assets
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