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 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 $ 139,000 330,000 $ 128,000 490,000 578,000 483,000 833,000 819,000 391,000 435,000 255,000 246,000 $ 2,526,000 $ 373,000 1,004,000 1,149,000 $ 2,526,000 $ 2,601,000 $ 344,000 1,004,000 1,253,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement Sales $ 4,560,000 Operating expenses Net operating income 3,876,000 684,000 Interest and taxes: $ 122,000 195,000 317,000 $ 367,000 Interest expense Tax expense Net income The company paid dividends of $263,000 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. (Do not round intermediate calculations and round your final answers 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 % %
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 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 $ 139,000 330,000 $ 128,000 490,000 578,000 483,000 833,000 819,000 391,000 435,000 255,000 246,000 $ 2,526,000 $ 373,000 1,004,000 1,149,000 $ 2,526,000 $ 2,601,000 $ 344,000 1,004,000 1,253,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement Sales $ 4,560,000 Operating expenses Net operating income 3,876,000 684,000 Interest and taxes: $ 122,000 195,000 317,000 $ 367,000 Interest expense Tax expense Net income The company paid dividends of $263,000 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. (Do not round intermediate calculations and round your final answers 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 % %
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
Beginning
Balance
Ending Balance
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
$ 139,000
330,000
$ 128,000
490,000
578,000
483,000
833,000
819,000
391,000
435,000
255,000
246,000
$ 2,526,000
$ 373,000
1,004,000
1,149,000
$ 2,526,000
$ 2,601,000
$ 344,000
1,004,000
1,253,000
$ 2,601,000
Joel de Paris, Incorporated
Income Statement
Sales
$ 4,560,000
Operating expenses
Net operating income
3,876,000
684,000
Interest and taxes:
$ 122,000
195,000
317,000
$ 367,000
Interest expense
Tax expense
Net income
The company paid dividends of $263,000 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. (Do not round intermediate calculations and
round your final answers 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
%
%
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