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 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, Incorporated Income Statement Sales Operating expenses Net operating income i Interest and taxes: Interest expense Tax expense Net income $ 129,000 199,000 Beginning Balance 392,000 246,000 $ 2,528,000 $ 139,000 339,000 576,000 836,000 $ 386,000 976,000 1,166,000 $ 2,528,000 $ 3,820,000 3,247,000 573,000 328,000 $ 245,000 Ending Balance $ 129,000 475,000 476,000 850,000 435,000 249,000 $2,614,000 $ 338,000 976,000 1,300,000 $ 2,614,000 The company paid dividends of $111,000 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) Ar last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? Check a
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 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, Incorporated Income Statement Sales Operating expenses Net operating income i Interest and taxes: Interest expense Tax expense Net income $ 129,000 199,000 Beginning Balance 392,000 246,000 $ 2,528,000 $ 139,000 339,000 576,000 836,000 $ 386,000 976,000 1,166,000 $ 2,528,000 $ 3,820,000 3,247,000 573,000 328,000 $ 245,000 Ending Balance $ 129,000 475,000 476,000 850,000 435,000 249,000 $2,614,000 $ 338,000 976,000 1,300,000 $ 2,614,000 The company paid dividends of $111,000 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) Ar last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? Check a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Joel de Paris, Incorporated
Income Statement
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
$ 129,000
199,000
$ 3,820,000
3,247,000
573,000
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
328,000
$ 245,000
The company paid dividends of $111,000 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?
%
%
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
Investment in Buisson, S.A.
Land (undeveloped)
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Long-term debt
Stockholders' equity
Joel de Paris, Incorporated
Income Statement
Sales
Operating expenses.
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
Beginning
Balance
$ 386,000
976,000
1,166,000
Total liabilities and stockholders' equity $ 2,528,000
$ 129,000
199,000
392,000
246,000
$ 2,528,000
$ 139,000
339,000
576,000
836,000
$ 3,820,000
3,247,000
573,000
328,000
$ 245,000
Ending
Balance
$ 129,000
475,000
476,000
850,000
435,000
249,000
$2,614,000
$ 338,000
976,000
1,300,000
$ 2,614,000
The company paid dividends of $111,000 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) Ar last year. (Round "Margin", "Turnover" and "ROI" to 2
decimal places.)
3. What was the company's residual income last year?
Check
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