Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance 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 $ 135,000 342,000 571,000 802,000 391,000 248,000 $ 2,489,000 $ 378,000 971,000 1,140,000 $ 2,489,000 Ending Balance $ 135,000 470,000 486,000 799,000 426,000 249,000 $ 2,565,000 $ 339,000 971,000 1,255,000 $ 2,565,000 Joel de Paris, Incorporated Income Statement Sales $ 4,488,000 Operating expenses Net operating income 3,904,560 583,440 Interest and taxes: $ 116,000 208,000 324,000 $ 259,440 Interest expense Tax expense Net income The company paid dividends of $144,440 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 13 Linall
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance 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 $ 135,000 342,000 571,000 802,000 391,000 248,000 $ 2,489,000 $ 378,000 971,000 1,140,000 $ 2,489,000 Ending Balance $ 135,000 470,000 486,000 799,000 426,000 249,000 $ 2,565,000 $ 339,000 971,000 1,255,000 $ 2,565,000 Joel de Paris, Incorporated Income Statement Sales $ 4,488,000 Operating expenses Net operating income 3,904,560 583,440 Interest and taxes: $ 116,000 208,000 324,000 $ 259,440 Interest expense Tax expense Net income The company paid dividends of $144,440 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 13 Linall
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rahul
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow:
Joel de Paris, Incorporated
Balance Sheet
Beginning
Balance
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
$ 135,000
342,000
571,000
802,000
391,000
248,000
$ 2,489,000
$ 378,000
971,000
1,140,000
$ 2,489,000
Ending Balance
$ 135,000
470,000
486,000
799,000
426,000
249,000
$ 2,565,000
$ 339,000
971,000
1,255,000
$ 2,565,000
Joel de Paris, Incorporated
Income Statement
Sales
$ 4,488,000
Operating expenses
Net operating income
3,904,560
583,440
Interest and taxes:
$ 116,000
208,000
324,000
$ 259,440
Interest expense
Tax expense
Net income
The company paid dividends of $144,440 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
13 Linall
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