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1. Average operating assets 2. Margin 2. Turnover %

1. Average operating assets 2. Margin 2. Turnover %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 113,000 192,000 $ 4,268,000 3,627,800 640, 200 305,000 $ 335,200 Beginning Balance $ 140,000 340,000 580,000 860,000 397,000 255,000 $ 2,572,000 Ending Balance $ 140,000 474,000 474,000 872,000 435,000 245,000 $ 2,640,000 $ 346,000 $ 372,000 990,000 1,210,000 990,000 1,304,000 $ 2,572,000 $ 2,640,000 The company paid dividends of $241,200 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%.
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 113,000 192,000 $ 4,268,000 3,627,800 640, 200 305,000 $ 335,200 Beginning Balance $ 140,000 340,000 580,000 860,000 397,000 255,000 $ 2,572,000 Ending Balance $ 140,000 474,000 474,000 872,000 435,000 245,000 $ 2,640,000 $ 346,000 $ 372,000 990,000 1,210,000 990,000 1,304,000 $ 2,572,000 $ 2,640,000 The company paid dividends of $241,200 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%.
Required: 1. 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 places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %
Transcribed Image Text:Required: 1. 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 places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %
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