| Financial data for Joel de Paris, Inc., for last year follow: |
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Joel de Paris, Inc. Balance Sheet |
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Beginning Balance |
Ending Balance |
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| Assets | ||||
| Cash | $ | 137,000 | $ | 128,000 |
| Accounts receivable |
342,000 | 484,000 | ||
| Inventory | 562,000 | 481,000 | ||
| Plant and equipment, net |
789,000 | 777,000 | ||
| Investment in Buisson, S.A. |
406,000 | 430,000 | ||
| Land (undeveloped) |
253,000 | 245,000 | ||
| Total assets | $ | 2,489,000 | $ | 2,545,000 |
| Liabilities and Stockholders’ Equity | ||||
| Accounts payable |
$ | 370,000 | $ | 350,000 |
| Long-term debt | 1,019,000 | 1,019,000 | ||
| Stockholders’ equity |
1,100,000 | 1,176,000 | ||
| Total liabilities and stockholders’ equity |
$ | 2,489,000 | $ | 2,545,000 |
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Joel de Paris, Inc. Income Statement |
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| Sales | $ | 4,255,000 | |
| Operating expenses |
3,574,200 | ||
| Net operating income |
680,800 | ||
| Interest and taxes: |
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|
Interest expense |
$ 113,000 | ||
| Tax expense | 209,000 | 322,000 | |
| Net income |
$ | 358,800 | |
|
The company paid dividends of |
| Required: | ||||||||||||||||||
| 1. |
Compute the company’s margin, turnover, and return on investment
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