Financial data for joel de paris, inc., for last year follow:
joel de paris, inc.
balance sheet
beginning
balance ending
balance
assets
cash $ 129,000 $ 132,000
accounts receivable 344,000 471,000
inventory 568,000 471,000
plant and equipment, net 819,000 826,000
investment in buisson, s. a. 392,000 434,000
land (undeveloped) 253,000 251,000
total assets $ 2,505,000 $ 2,585,000
liabilities and stockholders' equity
accounts payable $ 386,000 $ 349,000
long-term debt 1,027,000 1,027,000
stockholders' equity 1,092,000 1,209,000
total liabilities and stockholders' equity $ 2,505,000 $ 2,585,000
joel de paris, inc.
income statement
sales $ 4,700,000
operating expenses 4,042,000
net operating income 658,000
interest and taxes:
interest expense $ 121,000
tax expense 204,000 325,000
net income $ 333,000
the company paid dividends of $216,000 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 company’s margin, turnover, and return on investment (roi) for last year. (round your answers to 2 decimal places.)
2.
the board of directors of joel de paris, inc., has set a minimum required rate of return of 21%. what was the company’s residual income last year?