Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash 2$ 129, e00 333, еее 563, еее 805,000 395, е0е 251,000 $ 2,476, 000 126,000 490,000 488,000 766, еее 432, еее 250,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets $ 2,552,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 377,000 976, 000 1,123,000 2$ 348, еее 976, е0е 1,228, 000 Total liabilities and stockholders' equity $ 2,476, 000 $ 2,552,000 Joel de Paris, Inc. Income Statement $ 4,995,000 4,095,900 899,100 Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 116,000 196, 000 Tax expense 312, е0е Net income 2$ 587,100 The company paid dividends of $482,100 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin % Turnover ROI % 3. Residual income
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash 2$ 129, e00 333, еее 563, еее 805,000 395, е0е 251,000 $ 2,476, 000 126,000 490,000 488,000 766, еее 432, еее 250,000 Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets $ 2,552,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 377,000 976, 000 1,123,000 2$ 348, еее 976, е0е 1,228, 000 Total liabilities and stockholders' equity $ 2,476, 000 $ 2,552,000 Joel de Paris, Inc. Income Statement $ 4,995,000 4,095,900 899,100 Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 116,000 196, 000 Tax expense 312, е0е Net income 2$ 587,100 The company paid dividends of $482,100 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 % 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
Ending
Balance
Balance
Assets
$
24
129,000
333, өөө
563,000
805,000
395, е0е
251, 000
$ 2,476, 000
126, 000
490, өө
488,000
766,000
432, 9әө
250, 000
$ 2,552,000
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
2$
$
377,000
976,000
1,123,000
348, 000
976,000
1,228, 000
$ 2,552, е00
Total liabilities and stockholders' equity
$ 2,476, 000
Joel de Paris, Inc.
Income Statement
$ 4,995,000
4,095,900
899,100
Sales
Operating expenses
Net operating income
Interest and taxes:
$ 116,000
196,000
Interest expense
Тах expense
312,000
Net income
587,100
The company paid dividends of $482,100O 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
%
3.
Residual income
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