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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Plant and equipment, net Inventory 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 $ 131,000 346,000 568,000 815,000 396,000 250,000 $ 374,000 993,000 1,139,000 $ 2,506,000 $ 129,000 471,000 470,000 830,000 430,000 246,000 $ 2,576,000 $ 336,000 993,000 1,247,000 $ 2,576,000 $ 2,506,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 116,000 199,000 4,324,000 3,761,880 562,120 315,000 $ 247,120 The company paid dividends of $139,120 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? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income %6 %

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Plant and equipment, net Inventory 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 $ 131,000 346,000 568,000 815,000 396,000 250,000 $ 374,000 993,000 1,139,000 $ 2,506,000 $ 129,000 471,000 470,000 830,000 430,000 246,000 $ 2,576,000 $ 336,000 993,000 1,247,000 $ 2,576,000 $ 2,506,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 116,000 199,000 4,324,000 3,761,880 562,120 315,000 $ 247,120 The company paid dividends of $139,120 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? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income %6 %

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4E
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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Plant and equipment, net Inventory 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 $ 131,000 346,000 568,000 815,000 396,000 250,000 $ 374,000 993,000 1,139,000 $ 2,506,000 $ 129,000 471,000 470,000 830,000 430,000 246,000 $ 2,576,000 $ 336,000 993,000 1,247,000 $ 2,576,000 $ 2,506,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 116,000 199,000 4,324,000 3,761,880 562,120 315,000 $ 247,120 The company paid dividends of $139,120 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? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income %6 %
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Plant and equipment, net Inventory 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 $ 131,000 346,000 568,000 815,000 396,000 250,000 $ 374,000 993,000 1,139,000 $ 2,506,000 $ 129,000 471,000 470,000 830,000 430,000 246,000 $ 2,576,000 $ 336,000 993,000 1,247,000 $ 2,576,000 $ 2,506,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 116,000 199,000 4,324,000 3,761,880 562,120 315,000 $ 247,120 The company paid dividends of $139,120 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? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income %6 %
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