Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Incorporated, Joel de Paris, Incorporated Balance Sheet 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 last year follow: $ 117,000 206,000 $ 4,462,000 3,703,460 758,540 323,000 $ 435,540 Beginning Balance $ 131,000 343,000 562,000 884,000 409,000 248,000 $ 2,577,000 $ 374,000 952,000 1,251,000 $ 2,577,000 Ending Balance $ 133,000 488,000 476,000 863,000 429,000 250,000 $ 2,639,000 $ 349,000 952,000 1,338,000 $ 2,639,000 The company paid dividends of $348,540 last year. The "Investment in Buisson, S.A.," on the balance s 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 round your final answers to 2 decimal places.) 3. What was the company's residual income last year?
Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Incorporated, Joel de Paris, Incorporated Balance Sheet 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 last year follow: $ 117,000 206,000 $ 4,462,000 3,703,460 758,540 323,000 $ 435,540 Beginning Balance $ 131,000 343,000 562,000 884,000 409,000 248,000 $ 2,577,000 $ 374,000 952,000 1,251,000 $ 2,577,000 Ending Balance $ 133,000 488,000 476,000 863,000 429,000 250,000 $ 2,639,000 $ 349,000 952,000 1,338,000 $ 2,639,000 The company paid dividends of $348,540 last year. The "Investment in Buisson, S.A.," on the balance s 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 round your final answers to 2 decimal places.) 3. What was the company's residual income last year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
g-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
$ 117,000
206,000
$ 4,462,000
3,703,460
758,540
323,000
$ 435,540
Beginning
Balance
$ 131,000
343,000
562,000
884,000
409,000
248,000
$ 2,577,000
$ 374,000
952,000
1, 251,000
$ 2,577,000
Ending Balance
$ 133,000
488,000
476,000
863,000
429,000
250,000
$ 2,639,000
$ 349,000
952,000
1,338,000
$ 2,639,000
The company paid dividends of $348,540 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?
4
Transcribed Image Text:X Answer is not complete.
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
$
0.17%
1.62 X
0.28 %
362,540 x
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