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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 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 Interest and taxes: Interest expense Tax expense Net income $ 113,000 191,000 $ 4,180,000 3,636,600 543,400 304,000 $ 239,400 Beginning Balance $ 139,000 345,000 578,000 818,000 395,000 246,000 $ 2,521,000 Ending Balance $ 127,000 473,000 488,000 832,000 435,000 254,000 $ 2,609,000 $ 384,000 1,034,000 1,103,000 $ 2,521,000 $ 2,609,000 $ 347,000 1,034,000 1,228,000 The company paid dividends of $114,400 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets

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 Interest and taxes: Interest expense Tax expense Net income $ 113,000 191,000 $ 4,180,000 3,636,600 543,400 304,000 $ 239,400 Beginning Balance $ 139,000 345,000 578,000 818,000 395,000 246,000 $ 2,521,000 Ending Balance $ 127,000 473,000 488,000 832,000 435,000 254,000 $ 2,609,000 $ 384,000 1,034,000 1,103,000 $ 2,521,000 $ 2,609,000 $ 347,000 1,034,000 1,228,000 The company paid dividends of $114,400 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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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 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 Interest and taxes: Interest expense Tax expense Net income $ 113,000 191,000 $ 4,180,000 3,636,600 543,400 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 304,000 $ 239,400 Beginning Balance % $ 139,000 345,000 578,000 818,000 395,000 246,000 $ 2,521,000 % $ 384,000 1,034,000 1,103,000 $ 2,521,000 The company paid dividends of $114,400 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%. Ending Balance $ 127,000 473,000 488,000 832,000 435,000 254,000 $ 2,609,000 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 347,000 1,034,000 1,228,000 $ 2,609,000
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 Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 113,000 191,000 $ 4,180,000 3,636,600 543,400 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 304,000 $ 239,400 Beginning Balance % $ 139,000 345,000 578,000 818,000 395,000 246,000 $ 2,521,000 % $ 384,000 1,034,000 1,103,000 $ 2,521,000 The company paid dividends of $114,400 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%. Ending Balance $ 127,000 473,000 488,000 832,000 435,000 254,000 $ 2,609,000 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 347,000 1,034,000 1,228,000 $ 2,609,000
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