Assets Cash Joel de Paris, Incorporated Balance Sheet Beginning Balance $ 136,000 339,000 579,000 Ending Balance $ 126,000 475,000 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 846,000 409,000 251,000 $ 2,560,000 $ 375,000 1,043,000 1,142,000 481,000 858,000 426,000 251,000 $ 2,617,000 $ 332,000 1,043,000 1,242,000 $ 2,560,000 $ 2,617,000 Joel de Paris, Incorporated Income Statement Sales $ 4,800,000 Operating expenses Net operating income 4,032,000 768,000 Interest and taxes: Tax expense Interest expense Net income $ 125,000 193,000 318,000 $ 450,000 The company paid dividends of $350,000 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 % % < Prev 1 of 5 Next >
Assets Cash Joel de Paris, Incorporated Balance Sheet Beginning Balance $ 136,000 339,000 579,000 Ending Balance $ 126,000 475,000 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 846,000 409,000 251,000 $ 2,560,000 $ 375,000 1,043,000 1,142,000 481,000 858,000 426,000 251,000 $ 2,617,000 $ 332,000 1,043,000 1,242,000 $ 2,560,000 $ 2,617,000 Joel de Paris, Incorporated Income Statement Sales $ 4,800,000 Operating expenses Net operating income 4,032,000 768,000 Interest and taxes: Tax expense Interest expense Net income $ 125,000 193,000 318,000 $ 450,000 The company paid dividends of $350,000 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 % % < Prev 1 of 5 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Assets
Cash
Joel de Paris, Incorporated
Balance Sheet
Beginning
Balance
$ 136,000
339,000
579,000
Ending Balance
$ 126,000
475,000
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
846,000
409,000
251,000
$ 2,560,000
$ 375,000
1,043,000
1,142,000
481,000
858,000
426,000
251,000
$ 2,617,000
$ 332,000
1,043,000
1,242,000
$ 2,560,000
$ 2,617,000
Joel de Paris, Incorporated
Income Statement
Sales
$ 4,800,000
Operating expenses
Net operating income
4,032,000
768,000
Interest and taxes:
Tax expense
Interest expense
Net income
$ 125,000
193,000
318,000
$ 450,000
The company paid dividends of $350,000 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
%
%
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