Question: my answers are wrong please help Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance
my answers are wrong please help
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 | $ | 129,000 |
| Accounts receivable | 332,000 | 476,000 | ||
| Inventory | 572,000 | 488,000 | ||
| Plant and equipment, net | 849,000 | 827,000 | ||
| Investment in Buisson, S.A. | 396,000 | 434,000 | ||
| Land (undeveloped) | 245,000 | 246,000 | ||
| Total assets | $ | 2,521,000 | $ | 2,600,000 |
| Liabilities and Stockholders' Equity | ||||
| Accounts payable | $ | 376,000 | $ | 331,000 |
| Long-term debt | 1,041,000 | 1,041,000 | ||
| Stockholders' equity | 1,104,000 | 1,228,000 | ||
| Total liabilities and stockholders' equity | $ | 2,521,000 | $ | 2,600,000 |
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| Joel de Paris, Inc. Income Statement | |||
| Sales | $ | 3,990,000 | |
| Operating expenses | 3,431,400 | ||
| Net operating income | 558,600 | ||
| Interest and taxes: | |||
| Interest expense | 119,000 | ||
| Tax expense | 196,000 | 315,000 | |
| Net income | $ | 243,600 | |
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The company paid dividends of $119,600 last year. The Investment in Buisson, S.A., on the balance sheet represents an investment in the stock of another company.
Required:
1. Compute the companys margin, turnover, and return on investment (ROI) for last year. (Round your answers to 1 decimal place.)
2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 20%. What was the companys residual income last year?
net operating income?
minimum income requried?
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