Problem 12-5 Computing ROI and RI (LO2 - CC4, 6)

Financial data for Joel de Paris Inc. for last year follow: JOEL DE PARIS INC Balance Sheet Ending Beginning Balance Balance Assets Cash S 244,000 Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 732,000 488,000 976,000 372,000 226,000 366,000 854,000 488,000 732,000 338,000 244,000 Total assets $3,038,000 $3,022,000 Liabilities and Shareholders' Equity Accounts payable Long-term debt Shareholders' equity S 541,400 2,165,600 331,000 556,600 2,226,400 239,000 Total liabilities and shareholders equity $3,038,000 $3,022,000 JOEL DE PARIS INC Income Statement Sales Less: Operating expenses $6,100,000 5,795,000 305,000 Net operating income Less: Interest and taxes: Interest expense Tax expense $112,000 82,000 194,000 Net income S 111,000 The company paid dividends of $19,000 last year. The "Investment in Buisson, S.A." on the balance sheet represents an investment in the shares of another company. Required: 1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round your answers to 2 decimal place.) Margin Turnover ROI