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Business, 21.04.2020 04:48 taijaunam

Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc.
Balance Sheet
Beginning Ending
Balance Balance
Assets
Cash . 140,000 120,000
Accounts receivable . 450,000 530,000
Inventory . 320,000 380,000
Plant and equipment, net . 680,000 620,000
Investment in Buisson, SA . 250,000 280,000
Land (undeveloped) . 180,000 170,000
Total assets . 2,020,000 2,100,000
Joel de Paris, Inc.
Income Statement
Sales .
Operating expenses .
Net operating income .
Interest and taxes:
Interest expense .
Tax expense .
Net income : .
$4,050,000
3,645,000
405,000
$150,000
110,000 260,000
$ 145,000
The company paid dividends of $15,000 last year. The "Investment in Buisson, S. A.," on the balance sheet represents an investment in the stock of another company.
Required:
l. Compute the company's margin, turnover, and return on investment (ROI) for last year.
2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 15%. 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.
Balanc...
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