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. Accounta 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 $ 122,000 200,000 1. Average operating assets 2. Margin 2. Turnover. $4,032,000 3.306,240 725,760 2. ROI 3. Residual income 322,000 $ 403,760 Beginning Balance # $ 137,000 335,000 572,000 856,000 394,000 255,000 $ 2,549,000 56 $385,000 953,000 1,211,000 $ 2,549,000 The company paid dividends of $289,760 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 $ 126,000 486,000 477,000 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? 851,000 434,000 246,000 $ 2,620,000 $ 342,000 953,000 1,325,000 $ 2,620,000
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. Accounta 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 $ 122,000 200,000 1. Average operating assets 2. Margin 2. Turnover. $4,032,000 3.306,240 725,760 2. ROI 3. Residual income 322,000 $ 403,760 Beginning Balance # $ 137,000 335,000 572,000 856,000 394,000 255,000 $ 2,549,000 56 $385,000 953,000 1,211,000 $ 2,549,000 The company paid dividends of $289,760 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 $ 126,000 486,000 477,000 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? 851,000 434,000 246,000 $ 2,620,000 $ 342,000 953,000 1,325,000 $ 2,620,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Subject: acounting
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
$ 122,000
200,000
$4,032,000
1,306,240
725,760
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
322,000
$403,760
Beginning
Balance
%
$ 137,000
335,000
572,000
856,000
394,000
255,000
$ 2,549,000
%
Ending Balance
$ 126,000
486,000
477,000
851,000
434,000
246,000
$ 2,620,000
The company paid dividends of $289,760 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%.
$385,000
953,000
1,211,000
$ 2,549,000 $ 2,620,000
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
953,000
1,325,000
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