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

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, Inc., for last year follow:
Joel de Paris, Inc.
Balance Sheet
Beginning
Ending
Balance
Balance
Assets
138,000
334,000
572,000
806,000
398,000
246,000
$ 2,494,000
Cash
131,000
482,000
489,000
788,000
435,000
254, 000
$ 2,579,000
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
389,000
1,025,000
1,080,000
$ 2,494,000
341,000
1,025,000
1,213,000
$ 2,579,000
Total liabilities and stockholders' equity
Joel de Paris, Inc.
Income Statement
$ 5,049,000
4,241,160
807,840
Sales
Operating expenses
Net operating income
Interest and taxes:
$ 125,000
202,000
Interest expense
Тах expense
327,000
Net income
480,840
Transcribed Image Text:Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets 138,000 334,000 572,000 806,000 398,000 246,000 $ 2,494,000 Cash 131,000 482,000 489,000 788,000 435,000 254, 000 $ 2,579,000 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 389,000 1,025,000 1,080,000 $ 2,494,000 341,000 1,025,000 1,213,000 $ 2,579,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 5,049,000 4,241,160 807,840 Sales Operating expenses Net operating income Interest and taxes: $ 125,000 202,000 Interest expense Тах expense 327,000 Net income 480,840
The company paid dividends of $347,840 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. (Round "Margin", "Turnover" and "ROI" to 2
decimal places.)
3. What was the company's residual income last year?
Average operating assets
Margin
1.
2.
%
Turnover
ROI
%
3.
Residual income
Transcribed Image Text:The company paid dividends of $347,840 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin 1. 2. % Turnover ROI % 3. Residual income
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