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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assots Cash Accounts receivable Inventory Plant and equipment, not Investment in Buisson, S.A. Land (undeveloped) Total asseta Liabilities and stockholders Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement $360,000 1,500,000 160,000 Total liabilities and stockholders equity $2,020,000 Salos Operating expenses Net operating income- Interest and taxes Interest expense Tax expense Net income Beginning. Balance $ 150,000 110,000 $140,000. 450,000 320,000 680,000 250,000 100,000 $2,020,000 $4,050,000 3,645,000 405,000 260,000 $145,000 Ending Balance < Prev $ 120,000 530,000 380,000 620,000 200,000 170,000 $2,100,000 $310,000) 1,500,000 290,000 $2,100,000 The company paid dividends of $15,000 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% 5 of 6 Next >

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assots Cash Accounts receivable Inventory Plant and equipment, not Investment in Buisson, S.A. Land (undeveloped) Total asseta Liabilities and stockholders Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement $360,000 1,500,000 160,000 Total liabilities and stockholders equity $2,020,000 Salos Operating expenses Net operating income- Interest and taxes Interest expense Tax expense Net income Beginning. Balance $ 150,000 110,000 $140,000. 450,000 320,000 680,000 250,000 100,000 $2,020,000 $4,050,000 3,645,000 405,000 260,000 $145,000 Ending Balance < Prev $ 120,000 530,000 380,000 620,000 200,000 170,000 $2,100,000 $310,000) 1,500,000 290,000 $2,100,000 The company paid dividends of $15,000 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% 5 of 6 Next >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, not 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 Salon Operating expenses $360,000 1,500,000 160,000 Total liabilities and stockholders' equity $2,020,000 Net operating income- Interest and taxes Interest expense Tax expense Not income Beginning. Balance $ 150,000 110,000 $140,000. 450,000 320,000 680,000 250,000 100,000 $ 2,020,000 $4,050,000 3,645,000 405,000 260,000 145,000 Ending Balance < Prev $ 120,000 530,000 380,000 620,000 200,000 170,000 $2,100,000 310,000 1,500,000. 290,000 $2,100,000 The company paid dividends of $15,000 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% 5 of 6 Next >
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, not 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 Salon Operating expenses $360,000 1,500,000 160,000 Total liabilities and stockholders' equity $2,020,000 Net operating income- Interest and taxes Interest expense Tax expense Not income Beginning. Balance $ 150,000 110,000 $140,000. 450,000 320,000 680,000 250,000 100,000 $ 2,020,000 $4,050,000 3,645,000 405,000 260,000 145,000 Ending Balance < Prev $ 120,000 530,000 380,000 620,000 200,000 170,000 $2,100,000 310,000 1,500,000. 290,000 $2,100,000 The company paid dividends of $15,000 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% 5 of 6 Next >
Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxest Interest expense Tax expense Net income 1. Average operating assets 2. Margin 2 Turnover ROI $150,000 110,000 The company paid dividends of $15,000 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%. 2. 3. Residual income $4,050,000 3,645,000 405,000 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. (Round "Turnover" to 1 decimal place.) 3. What was the company's residual income last year? 260,000 $ 145,000 10% %
Transcribed Image Text:Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxest Interest expense Tax expense Net income 1. Average operating assets 2. Margin 2 Turnover ROI $150,000 110,000 The company paid dividends of $15,000 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%. 2. 3. Residual income $4,050,000 3,645,000 405,000 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. (Round "Turnover" to 1 decimal place.) 3. What was the company's residual income last year? 260,000 $ 145,000 10% %
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