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 $ 116,000 203,000 $ 4,512,000 3,790,080 721,920 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 319,000 $ 402,920 Beginning Balance % $ 138,000 348,000 567,000 % 807,000 392,000 253,000 $ 2,505,000 Ending Balance $ 127,000 481,000 474,000 $ 380,000 1,014,000 1,111,000 The company paid dividends of $280,920 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%. 818,000 431,000 249,000 $ 2,580,000 $333,000 1,014,000 1,233,000 $ 2,505,000 $ 2,580,000 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?
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 $ 116,000 203,000 $ 4,512,000 3,790,080 721,920 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 319,000 $ 402,920 Beginning Balance % $ 138,000 348,000 567,000 % 807,000 392,000 253,000 $ 2,505,000 Ending Balance $ 127,000 481,000 474,000 $ 380,000 1,014,000 1,111,000 The company paid dividends of $280,920 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%. 818,000 431,000 249,000 $ 2,580,000 $333,000 1,014,000 1,233,000 $ 2,505,000 $ 2,580,000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject -acounting
Transcribed Image Text:/transcript
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
$ 116,000
203,000
$ 4,512,000
3,790,080
721,920
1. Average operating assets
2. Margin
2. Turnover
2. ROI
3. Residual income
319,000
$ 402,920
Beginning
Balance
%
$ 138,000
348,000
567,000
807,000
392,000
253,000
$ 2,505,000
%
Ending Balance
$ 127,000
481,000
474,000
818,000
431,000
249,000
$ 2,580,000
The company paid dividends of $280,920 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%.
$ 333,000
1,014,000
1,233,000
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?
$ 380,000
1,014,000
1,111,000
$ 2,505,000 $ 2,580,000
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