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Interest and taxes: Interest expense Tax expense Net income $ 130,000 210,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 340,000 $ 189, 200 The company paid dividends of $102,200 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 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: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? % %

Interest and taxes: Interest expense Tax expense Net income $ 130,000 210,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 340,000 $ 189, 200 The company paid dividends of $102,200 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 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: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Beginning Balance $ 130,000 210,000 $ 133,000 340,000 563,000 834,000 409,000 $2,000 $ 2,531,000 $ 371,000 $ 342,000 959,000 959,000 1,201,000 1,288,000 Total liabilities and stockholders' equity $ 2,531,000 $ 2,589,000 $ 3,780,000 3,250,800 529, 200 Ending Balance 340,000 $ 126,000 481,000 488,000 815,000 426,000 253,000 $ 2,589,000
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 Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Beginning Balance $ 130,000 210,000 $ 133,000 340,000 563,000 834,000 409,000 $2,000 $ 2,531,000 $ 371,000 $ 342,000 959,000 959,000 1,201,000 1,288,000 Total liabilities and stockholders' equity $ 2,531,000 $ 2,589,000 $ 3,780,000 3,250,800 529, 200 Ending Balance 340,000 $ 126,000 481,000 488,000 815,000 426,000 253,000 $ 2,589,000
Interest and taxes: Interest expense Tax expense Net income $ 130,000 210,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 340,000 $ 189, 200 The company paid dividends of $102,200 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 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: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? % %
Transcribed Image Text:Interest and taxes: Interest expense Tax expense Net income $ 130,000 210,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 340,000 $ 189, 200 The company paid dividends of $102,200 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 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: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year? % %
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