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 $ 128,000 205,000 1. Average operating assets 2. Margin 2. Turnover $ 4,268,000 3,670,480 597,520 2. ROI 3 Residual income 333,000 $ 264,520 Beginning Balance % $ 127,000 336,000 563,000 894,000 % 393,000 251,000 $ 2,564,000 $ 373,000 994,000 1,197,000 $ 2,564,000 The company paid dividends of $150,520 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 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? $ 132,000 485,000 476,000 867,000 431,000 247,000 $ 2,638,000 $ 333,000 994,000 1,311,000 $ 2,638,000
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 $ 128,000 205,000 1. Average operating assets 2. Margin 2. Turnover $ 4,268,000 3,670,480 597,520 2. ROI 3 Residual income 333,000 $ 264,520 Beginning Balance % $ 127,000 336,000 563,000 894,000 % 393,000 251,000 $ 2,564,000 $ 373,000 994,000 1,197,000 $ 2,564,000 The company paid dividends of $150,520 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 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? $ 132,000 485,000 476,000 867,000 431,000 247,000 $ 2,638,000 $ 333,000 994,000 1,311,000 $ 2,638,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: accounting
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
$ 128,000
205,000
$ 4,268,000
3,670,480
597,520
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
333,000
$ 264,520
Beginning
Balance
%
$ 127,000
336,000
563,000
894,000
393,000
251,000
$ 2,564,000
%
$ 373,000
994,000
1,197,000
$ 2,564,000
Ending Balance
$ 132,000
485,000
476,000
The company paid dividends of $150,520 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%
867,000
431,000
247,000
$ 2,638,000
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?
$ 333,000
994,000
1,311,000
$ 2,638,000
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