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 $ 127,000 199,000 $ 3,948,000 3,355,800 592,200 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 326,000 $ 266,200 Beginning Balance % $ 132,000 339,000 570,000 % 819,000 393,000 245,000 $ 2,498,000 $ 387,000 957,000 1,154,000 $ 2,498,000 The company paid dividends of $146,200 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 $ 129,000 487,000 471,000 813,000 425,000 248,000 $ 2,573,000 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? $ 342,000 957,000 1,274,000 $ 2,573,000 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?
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 $ 127,000 199,000 $ 3,948,000 3,355,800 592,200 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 326,000 $ 266,200 Beginning Balance % $ 132,000 339,000 570,000 % 819,000 393,000 245,000 $ 2,498,000 $ 387,000 957,000 1,154,000 $ 2,498,000 The company paid dividends of $146,200 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 $ 129,000 487,000 471,000 813,000 425,000 248,000 $ 2,573,000 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? $ 342,000 957,000 1,274,000 $ 2,573,000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
G.84.
Transcribed Image Text:D
ces
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
$ 127,000
199,000
$ 3,948,000
3,355,800
592,200
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
326,000
$ 266,200
Beginning
Balance
%
$ 132,000
339,000
570,000
819,000
393,000
245,000
$ 2,498,000
%
$ 387,000
957,000
1,154,000
$ 2,498,000
Ending Balance
$ 129,000
487,000
The company paid dividends of $146,200 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%.
471,000
813,000
425,000
248,000
$ 2,573,000
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?
$ 342,000
957,000
1,274,000
$ 2,573,000
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?
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