Financial data for Joel de Paris, Incorporated, for last year follow. Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Beginning Balance $ 127,000 348,000 Ending Balance $ 140,000 481,000 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 566,000 839,000 398,000 246,000 $ 2,524,000 488,000 811,000 431,000 250,000 $ 383,000 1,038,000 1,103,000 $ 2,524,000 $ 2,601,000 $ 333,000 1,038,000 1,230,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement $ 4,370,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 112,000 195,000 3,627,100 742,900 307,000 $ 435,900 The company paid dividends of $308,900 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 is 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. Note: 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 % 96
Financial data for Joel de Paris, Incorporated, for last year follow. Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Beginning Balance $ 127,000 348,000 Ending Balance $ 140,000 481,000 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 566,000 839,000 398,000 246,000 $ 2,524,000 488,000 811,000 431,000 250,000 $ 383,000 1,038,000 1,103,000 $ 2,524,000 $ 2,601,000 $ 333,000 1,038,000 1,230,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement $ 4,370,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 112,000 195,000 3,627,100 742,900 307,000 $ 435,900 The company paid dividends of $308,900 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 is 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. Note: 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 % 96
Chapter6: Investing And Financing Activities
Section: Chapter Questions
Problem 1M
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
Beginning
Balance
$ 127,000
348,000
Ending Balance
$ 140,000
481,000
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
566,000
839,000
398,000
246,000
$ 2,524,000
488,000
811,000
431,000
250,000
$ 383,000
1,038,000
1,103,000
$ 2,524,000
$ 2,601,000
$ 333,000
1,038,000
1,230,000
$ 2,601,000
Joel de Paris, Incorporated Income Statement
$ 4,370,000
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
$ 112,000
195,000
3,627,100
742,900
307,000
$ 435,900
The company paid dividends of $308,900 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 is 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.
Note: 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
%
96
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