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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 $ 110,000 199,000 $ 4,416,000 3,665,280 750,720 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 309,000 $441,720 Balance % $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 % $ 382,000 1,020,000 1,156,000 Ending Balance) $ 128,000 483,000 472,000 857,000 The company paid dividends of $331,720 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmen the stock of another company. The company's minimum required rate of return of 15%. 428,000 249,000 $ 2,617,000 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 a round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 331,000 1,020,000 1,266,000 $ 2,558,000. $ 2,617,000

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 $ 110,000 199,000 $ 4,416,000 3,665,280 750,720 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 309,000 $441,720 Balance % $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 % $ 382,000 1,020,000 1,156,000 Ending Balance) $ 128,000 483,000 472,000 857,000 The company paid dividends of $331,720 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmen the stock of another company. The company's minimum required rate of return of 15%. 428,000 249,000 $ 2,617,000 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 a round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 331,000 1,020,000 1,266,000 $ 2,558,000. $ 2,617,000

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
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Problem 10-15 (Algo) Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] 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 $ 110,000 199,000 $ 4,416,000 3,665,280 750,720 1. Average operating assets 2. Margin 2. Turnover 309,000 $441,720 Beginning Balance $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 Ending Balance $ 128,000 483,000 472,000 857,000 428,000 249,000 $2,617,000 $382,000 1,020,000 1,156,000 $ 331,000 1,020,000 1,266,000 $ 2,558,000 $ 2,617,000 The company paid dividends of $331,720 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?
Transcribed Image Text:Problem 10-15 (Algo) Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] 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 $ 110,000 199,000 $ 4,416,000 3,665,280 750,720 1. Average operating assets 2. Margin 2. Turnover 309,000 $441,720 Beginning Balance $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 Ending Balance $ 128,000 483,000 472,000 857,000 428,000 249,000 $2,617,000 $382,000 1,020,000 1,156,000 $ 331,000 1,020,000 1,266,000 $ 2,558,000 $ 2,617,000 The company paid dividends of $331,720 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?
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 $ 110,000 199,000 $ 4,416,000 3,665,280 750,720 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 309,000 $441,720 Balance % $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 % $ 382,000 1,020,000 1,156,000 Ending Balance) $ 128,000 483,000 472,000 857,000 The company paid dividends of $331,720 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmen the stock of another company. The company's minimum required rate of return of 15%. 428,000 249,000 $ 2,617,000 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 a round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 331,000 1,020,000 1,266,000 $ 2,558,000. $ 2,617,000
Transcribed Image Text: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 $ 110,000 199,000 $ 4,416,000 3,665,280 750,720 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 309,000 $441,720 Balance % $ 130,000 346,000 576,000 848,000 404,000 254,000 $ 2,558,000 % $ 382,000 1,020,000 1,156,000 Ending Balance) $ 128,000 483,000 472,000 857,000 The company paid dividends of $331,720 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmen the stock of another company. The company's minimum required rate of return of 15%. 428,000 249,000 $ 2,617,000 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 a round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 331,000 1,020,000 1,266,000 $ 2,558,000. $ 2,617,000
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