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 incone Interest and taxes: Interest expense Tax expense Net income Joel de Paris, Inc. Income Statement 1. 2. Margin Average operating assets $113,000 190,000 $5,130,000 4.411,800 718,200 Turnover ROI 3. Residual income 303,000 $415,200 Beginning Balance The company paid dividends of $300,200 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% % $ 125,000 344,000 571,000 840,000 401,000 249,000 $2,530,000 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 and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? % Ending Balance: $135,000 489,000 481,000 815,000 429,000 253,000 $2,602,000 $ 374,000 $ 331,000 1,026,000 1,026,000 1,130,000 1,245,000 $2,530,000 $ 2,602,000
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 incone Interest and taxes: Interest expense Tax expense Net income Joel de Paris, Inc. Income Statement 1. 2. Margin Average operating assets $113,000 190,000 $5,130,000 4.411,800 718,200 Turnover ROI 3. Residual income 303,000 $415,200 Beginning Balance The company paid dividends of $300,200 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% % $ 125,000 344,000 571,000 840,000 401,000 249,000 $2,530,000 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 and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? % Ending Balance: $135,000 489,000 481,000 815,000 429,000 253,000 $2,602,000 $ 374,000 $ 331,000 1,026,000 1,026,000 1,130,000 1,245,000 $2,530,000 $ 2,602,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hw.24.
Transcribed Image Text: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
Joel de Paris, Inc.
Income Statement
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
1.
2
$113,000
190,000
Show Transcribed Text
Average operating assets
Margin
Turnover
ROI
3. Residual income
$5,130,000
4,411,800
718,200
303,000
$415,200
Beginning
Balance
%
$ 125,000
344,000
The company paid dividends of $300,200 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%.
%
571,000
840,000
401,000
249,000
$2,530,000
Ending
Balance
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?
$135,000
489,000
481,000
815,000
429,000
253,000
$2,602,000
$ 374,000 $ 331,000
1,026,000
1,026,000
1,130,000
1,245,000
$2,530,000 $2,602,000
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