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(Solved): -inancial data for Joel de Paris, Incorporated, for last year follow: The company paid dividends of ...



-inancial data for Joel de Paris, Incorporated, for last year follow:
The company paid dividends of \( \$ 191,000 \) last yeaComparative data on three companies in the same service industry are given below:
Required:
2. Fill in the missing informatio
-inancial data for Joel de Paris, Incorporated, for last year follow: The company paid dividends of last year. The "Investment in Buisson, S.A.," on he balance sheet represents an investment in the stock of another company. The :ompany's minimum required rate of return of . Pequired: . 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 slaces.) 3. What was the company's residual income last year? Comparative data on three companies in the same service industry are given below: Required: 2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.)


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Average Operating Assets = (Beginning Balances + Ending Balances )/2
Average Operating Assets = ($1,860,000 +$1,900,000 )/2
Average Operating Assets = $1,880,000

Required 2 :
Compute the Company's Margin , Turnover and Return on Investment (ROI) for Last Year :
Margin = Net Operating Income / Sales
Net Operating Income = $611,000
Sales = $4,700,000
Margin = $611,000 /$4,700,000
Margin = 13% 
Turnover = Sales / Average Opearting Assets 
Sales = $4,700,000
Average Opearting Assets  = $1,880,000
Turnover = $4,700,000 /$1,880,000
Turnover = 2.5
Return on Investment (ROI) = Margin* Turnover 
Margin = 13% 
Turnover = 2.5
Return on Investment (ROI) = Margin* Turnover 
Return on Investment (ROI) = 13%*2.5
Return on Investment (ROI) = 32.5%

Calculate the Company's Residual Income Last Year :
Minimum Required Return = Minimum Required rate of return *Average Operating Assets
Minimum Required Return = 15% *$1,880,000
Minimum Required Return = $282,000
Net Operating Income = $611,000
Residual Income = Net Operating Income - Minimum Required Return
Residual Income = $611,000-$282,000
Residual Income = $329,000
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