Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. 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 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income Joel de Paris, Inc. Income Statement $120,000 199,000 1. Average operating assets 2. Margin Tumover ROI Residual income 3 $4,536,000 3,855,600 680,400 319,000 S 361,400 Beginning Balance % $ 133,000 $ 132,000 349,000 482,000 568,000 820,000 Ending Balance 402,000 255,000 432,000 251,000 $2,527,000 $2,593,000 $386,000 1,027,000 1,114,000 490,000 806,000 The company paid dividends of $246,400 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%. $ 337,000 1,027,000 1,229,000 $2,527,000 $2,593,000 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places) 3. What was the company's residual income last year?
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. 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 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income Joel de Paris, Inc. Income Statement $120,000 199,000 1. Average operating assets 2. Margin Tumover ROI Residual income 3 $4,536,000 3,855,600 680,400 319,000 S 361,400 Beginning Balance % $ 133,000 $ 132,000 349,000 482,000 568,000 820,000 Ending Balance 402,000 255,000 432,000 251,000 $2,527,000 $2,593,000 $386,000 1,027,000 1,114,000 490,000 806,000 The company paid dividends of $246,400 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%. $ 337,000 1,027,000 1,229,000 $2,527,000 $2,593,000 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. (Round "Margin", "Turnover" and "ROI" 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
Related questions
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Subject :- Account
Transcribed Image Text:aces
Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc.
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
Sales
Operating expenses.
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
Joel de Paris, Inc.
Income Statement
1.
2.
3
$120,000
199,000
$4,536,000
3,855,600
680,400
Average operating assets
Margin
Tumover
ROI
Residual income
319,000
$361,400
Beginning
Balance
%
%
$ 133,000 $ 132,000
349,000
482,000
568,000
820,000
402,000
255,000
$2,527,000
Ending
Balance
$ 386,000
1,027,000
1,114,000
$2,527,000
The company paid dividends of $246,400 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?
490,000
806,000
432,000
251,000
$2,593,000
$ 337,000
1,027,000
1,229,000
$2,593,000
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