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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 $ 123,000 202,000 $3,720,000 3,199,200 520,800 $ 325,000 195,800 Beginning Balance $ 128,000 $ 136,000 475,000 476,000 342,000 569,000 801,000 395,000 253,000 $2,488,000 Ending Balance $ 381,000 1,003,000 1,104,000 $ 2,488,000 793,000 426,000 254,000 $2,560,000 $ 335,000 1,003,000 1,222,000 $2,560,000 The company paid dividends of $77,800 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%.

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 $ 123,000 202,000 $3,720,000 3,199,200 520,800 $ 325,000 195,800 Beginning Balance $ 128,000 $ 136,000 475,000 476,000 342,000 569,000 801,000 395,000 253,000 $2,488,000 Ending Balance $ 381,000 1,003,000 1,104,000 $ 2,488,000 793,000 426,000 254,000 $2,560,000 $ 335,000 1,003,000 1,222,000 $2,560,000 The company paid dividends of $77,800 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%.

FINANCIAL ACCOUNTING
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 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 $ 123,000 202,000 $3,720,000 3,199, 200 520,800 325,000 $ 195,800 Beginning Balance Ending Balance $ 128,000 $ 136,000 475,000 342,000 569,000 801,000 395,000 253,000 $ 2,488,000 476,000 793,000 426,000 254,000 $ 2,560,000 $ 335,000 $ 381,000 1,003,000 1,104,000 1,003,000 1,222,000 $2,488,000 $2,560,000 The company paid dividends of $77,800 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%.
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 $ 123,000 202,000 $3,720,000 3,199, 200 520,800 325,000 $ 195,800 Beginning Balance Ending Balance $ 128,000 $ 136,000 475,000 342,000 569,000 801,000 395,000 253,000 $ 2,488,000 476,000 793,000 426,000 254,000 $ 2,560,000 $ 335,000 $ 381,000 1,003,000 1,104,000 1,003,000 1,222,000 $2,488,000 $2,560,000 The company paid dividends of $77,800 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? 1. Average operating assets 2. Margin Turnover ROI Residual income 3. % %
Transcribed Image Text: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? 1. Average operating assets 2. Margin Turnover ROI Residual income 3. % %
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