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 $ 115,000 191,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI Beginning Balance $ 5,049,000 4,291,650 757,350 579,000 799,000 407,000 251,000 $ 2,508,000 306,000 $ 451,350 % $ 125,000 347,000 $385,000 967,000 1,156,000 $ 2,508,000 % Ending Balance The company paid dividends of $347,350 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%. $ 137,000 484,000 489,000 780,000 429,000 249,000 $ 2,568,000 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? $ 341,000 967,000 1,260,000 $ 2,568,000
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 $ 115,000 191,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI Beginning Balance $ 5,049,000 4,291,650 757,350 579,000 799,000 407,000 251,000 $ 2,508,000 306,000 $ 451,350 % $ 125,000 347,000 $385,000 967,000 1,156,000 $ 2,508,000 % Ending Balance The company paid dividends of $347,350 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%. $ 137,000 484,000 489,000 780,000 429,000 249,000 $ 2,568,000 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? $ 341,000 967,000 1,260,000 $ 2,568,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
$ 115,000
191,000
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
Beginning
Balance
$ 125,000
347,000
579,000
799,000
407,000
251,000
$ 2,508,000
$ 5,049,000
4,291,650
757,350
$385,000
967,000
1,156,000
$ 2,508,000
306,000
$ 451,350
%
%
Ending Balance
$ 137,000
484,000
489,000
780,000
The company paid dividends of $347,350 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%.
429,000
249,000
$ 2,568,000
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?
$ 341,000
967,000
1,260,000
$ 2,568,000
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