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 $ 113,000 198,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income Beginning Balance $ 5,208,000 4,530,960 677,040 390,000 253,000 $ 2,483,000 311,000 $ 366,040 % $ 136,000 344,000 561,000 799,000 $ 374,000 957,000 1,152,000 $ 2,483,000 % Ending Balance The company paid dividends of $268,040 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%. $ 136,000 485,000 484,000 775,000 426,000 245,000 $ 2,551,000 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 "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? $ 344,000 957,000 1,250,000 $ 2,551,000
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 $ 113,000 198,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income Beginning Balance $ 5,208,000 4,530,960 677,040 390,000 253,000 $ 2,483,000 311,000 $ 366,040 % $ 136,000 344,000 561,000 799,000 $ 374,000 957,000 1,152,000 $ 2,483,000 % Ending Balance The company paid dividends of $268,040 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%. $ 136,000 485,000 484,000 775,000 426,000 245,000 $ 2,551,000 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 "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? $ 344,000 957,000 1,250,000 $ 2,551,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow:
Joel de Paris, Incorporated
Balance Sheet
Assets
Cashi
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
$ 113,000
198,000
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
Beginning
Balance
$ 5,208,000
4,530,960
677,040
561,000
799,000
390,000
253,000
$ 2,483,000
311,000
$ 366,040
%
$ 136,000
344,000
$ 374,000
957,000
1,152,000
$ 2,483,000
%
Ending Balance
The company paid dividends of $268,040 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%.
$ 136,000
485,000
484,000
775,000
426,000
245,000
$ 2,551,000
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 "Margin", "Turnover" and "ROI" to 2
decimal places.)
3. What was the company's residual income last year?
$ 344,000
957,000
1,250,000
$ 2,551,000
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