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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Beginning Balance Ending Balance $ 127,000 $ 135,000 343,000 477,000 577,000 488,000 813,000 800,000 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 Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income $ 127,000 195,000 $ 3,948,000 3,434,760 513,240 322,000 $ 191,240 402,000 249,000 $ 2,511,000 $ 379,000 1,048,000 1,084,000 426,000 253,000 $ 2,579,000 $ 344,000 1,048,000 1,187,000 $ 2,511,000 $ 2,579,000 The company paid dividends of $88,240 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 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual Income last year? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 2. Turnover 2. ROI $ 2,294,000 ( 4.84 1.72 % 8.34 % 3. Residual income $ (152,860) x

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Beginning Balance Ending Balance $ 127,000 $ 135,000 343,000 477,000 577,000 488,000 813,000 800,000 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 Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income $ 127,000 195,000 $ 3,948,000 3,434,760 513,240 322,000 $ 191,240 402,000 249,000 $ 2,511,000 $ 379,000 1,048,000 1,084,000 426,000 253,000 $ 2,579,000 $ 344,000 1,048,000 1,187,000 $ 2,511,000 $ 2,579,000 The company paid dividends of $88,240 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 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual Income last year? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 2. Turnover 2. ROI $ 2,294,000 ( 4.84 1.72 % 8.34 % 3. Residual income $ (152,860) x

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Beginning Balance Ending Balance $ 127,000 $ 135,000 343,000 477,000 577,000 488,000 813,000 800,000 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 Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income $ 127,000 195,000 $ 3,948,000 3,434,760 513,240 322,000 $ 191,240 402,000 249,000 $ 2,511,000 $ 379,000 1,048,000 1,084,000 426,000 253,000 $ 2,579,000 $ 344,000 1,048,000 1,187,000 $ 2,511,000 $ 2,579,000 The company paid dividends of $88,240 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 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual Income last year? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 2. Turnover 2. ROI $ 2,294,000 ( 4.84 1.72 % 8.34 % 3. Residual income $ (152,860) x
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Beginning Balance Ending Balance $ 127,000 $ 135,000 343,000 477,000 577,000 488,000 813,000 800,000 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 Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income $ 127,000 195,000 $ 3,948,000 3,434,760 513,240 322,000 $ 191,240 402,000 249,000 $ 2,511,000 $ 379,000 1,048,000 1,084,000 426,000 253,000 $ 2,579,000 $ 344,000 1,048,000 1,187,000 $ 2,511,000 $ 2,579,000 The company paid dividends of $88,240 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 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual Income last year? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 2. Turnover 2. ROI $ 2,294,000 ( 4.84 1.72 % 8.34 % 3. Residual income $ (152,860) x
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