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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets $ 137,000 $ 128,000 332,000 574,000 867,000 391,000 253,000 $ 2,554,000 Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 487,000 470,000 865,000 435,000 253,000 $ 2,638,000 Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity 384,000 980,000 1,190,000 $ 2,554,000 344,000 980, 000 1,314,000 $ 2,638,000 Joel de Paris, Inc. Income Statement

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets $ 137,000 $ 128,000 332,000 574,000 867,000 391,000 253,000 $ 2,554,000 Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 487,000 470,000 865,000 435,000 253,000 $ 2,638,000 Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity 384,000 980,000 1,190,000 $ 2,554,000 344,000 980, 000 1,314,000 $ 2,638,000 Joel de Paris, Inc. Income Statement

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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CH11_HW_QA1_PIR

 

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash 137,000 332,000 574,000 867,000 391,000 253,000 128,000 487,000 470,000 865,000 435,000 253,000 $ 2,638,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets $ 2,554,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 384,000 980,000 1,190,000 $ 2,554,000 344,000 980,000 1,314,000 Total liabilities and stockholders' equity $ 2,638,000 Joel de Paris, Inc. Income Statement $ 4,632,000 3,890,880 741,120 Sales Operating expenses Net operating income Interest and taxes: $ 128,000 198,000 Interest expense Tax expense 326,000 Net income 415,120 The company paid dividends of $291,120 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 Turnover 1. 2. % ROI % 3. Residual income
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 Cash 137,000 332,000 574,000 867,000 391,000 253,000 128,000 487,000 470,000 865,000 435,000 253,000 $ 2,638,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets $ 2,554,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 384,000 980,000 1,190,000 $ 2,554,000 344,000 980,000 1,314,000 Total liabilities and stockholders' equity $ 2,638,000 Joel de Paris, Inc. Income Statement $ 4,632,000 3,890,880 741,120 Sales Operating expenses Net operating income Interest and taxes: $ 128,000 198,000 Interest expense Tax expense 326,000 Net income 415,120 The company paid dividends of $291,120 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 Turnover 1. 2. % ROI % 3. Residual income
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