Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 139,800 346,00e 565,000 860,000 396,80e 251,000 139,00e 479, 000 476, eee 856, eee 430,000 250,000 Total assets $ 2,557,000 $ 2,630,e0e Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 381,000 1,ee7,e0e 1,169,00e $ 2,557,000 345,800 1,007, 000 1,278,e00 $ 2,630,e0e Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: $ 4,053,800 3,323,469 729,540 Interest expense Тах еxpense $ 121,000 193, еее 314,000 Net income 415,548 The company paid dividends of $306,540 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%. Requlred: 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 Intermedlate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin Turnover ROI 1. 2. 3. Residual income
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 139,800 346,00e 565,000 860,000 396,80e 251,000 139,00e 479, 000 476, eee 856, eee 430,000 250,000 Total assets $ 2,557,000 $ 2,630,e0e Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 381,000 1,ee7,e0e 1,169,00e $ 2,557,000 345,800 1,007, 000 1,278,e00 $ 2,630,e0e Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: $ 4,053,800 3,323,469 729,540 Interest expense Тах еxpense $ 121,000 193, еее 314,000 Net income 415,548 The company paid dividends of $306,540 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%. Requlred: 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 Intermedlate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin Turnover ROI 1. 2. 3. Residual income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc.
Balance Sheet
Beginning
Balance
Ending
Balance
Assets
139,e00
346,000
565,000
860, 000
396,000
251,000
$ 2,557,00e
139, e00
479, e00
476, e00
856, e00
430, e00
250, 000
Cash
Accounts receivable
Inventory
Plant and equipment, net
Investment in Buisson, S.A.
Land (undeveloped)
Total assets
$ 2,630, e00
Liabilities and Stockholders' Equity
Accounts payable
Long-term debt
Stockholders' equity
381,000
1, 807,000
1,169,000
345, e0e
1,007, e90
1,278, 000
Total liabilities and stockholders' equity
$ 2,557,006e
$ 2,630, 00e
Joel de Paris, Inc.
Income Statement
$ 4,053,000
3,323,460
729,540
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Тах еxpense
$ 121,000
193,000
314,000
Net income
415,540
The company paid dividends of $306,540 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%.
Requlred:
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 Intermedlate calculatlons and
round your final answers to 2 declmal places.)
3. What was the company's residual income last year?
1.
Average operating assets
2.
Margin
Turnover
ROI
3.
Residual income
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