Financial data for Joel de Paris, Inc., for last year follow:

Financial data for Joel de Paris, Inc., for last year follow:

Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	125,000	$	139,000
Accounts receivable		331,000		488,000
Inventory		573,000		472,000
Plant and equipment, net		871,000		841,000
Investment in Buisson, S.A.		407,000		433,000
Land (undeveloped)		248,000		246,000
Total assets	$	2,555,000	$	2,619,000
Liabilities and Stockholders' Equity
Accounts payable	$	372,000	$	337,000
Long-term debt		1,037,000		1,037,000
Stockholders' equity		1,146,000		1,245,000
Total liabilities and stockholders' equity	$	2,555,000	$	2,619,000

Joel de Paris, Inc. Income Statement
Sales		$	4,224,000
Operating expenses			3,548,160
Net operating income			675,840
Interest and taxes:
Interest expense	$ 127,000
Tax expense	197,000		324,000
Net income		$	351,840

The company paid dividends of $252,840 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.)    Explanation: 1. Operating assets do not include investments in other companies or in undeveloped land.     Beginning Balances Ending Balances   Cash $ 125,000   $ 139,000     Accounts receivable   331,000     488,000     Inventory   573,000     472,000     Plant and equipment (net)   871,000     841,000       Total operating assets $ 1,900,000   $ 1,940,000     Average operating assets = $1,940,000 + $1,900,000 =  $1,920,000 2 Margin = Net operating income     Sales   = $675,840 = 16.00% $4,224,000 Turnover = Sales     Average operating assets   = $4,224,000 =  2.20 $1,920,000  ROI =  Margin × Turnover   =  16.00% × 2.20 = 35.20% 2. Minimum required return (14% × $1,920,000) = $268,800