Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net $ 126,000 $ 135,000 342,000 565,000 897,000 399,000 255,000 486,000 488,000 861,000 434,000 251,000 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 ces Sales Operating expenses Interest and taxes: $ 2,584,000 $ 381,000 1,048,000 1,155,000 $ 2,655,000 $ 348,000 1,048,000 1,259,000 $ 2,584,000 $ 2,655,000 $ 5,265,000 4,369,950 895,050 Net operating income Interest expense Tax expense Net income $ 113,000 196,000 309,000 $ 586,050 The company paid dividends of $482,050 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? 1. Average operating assets $ 2,619,500 2. Margin 17.00 % 2. Turnover 2. ROI 3. Residual income %
Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net $ 126,000 $ 135,000 342,000 565,000 897,000 399,000 255,000 486,000 488,000 861,000 434,000 251,000 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 ces Sales Operating expenses Interest and taxes: $ 2,584,000 $ 381,000 1,048,000 1,155,000 $ 2,655,000 $ 348,000 1,048,000 1,259,000 $ 2,584,000 $ 2,655,000 $ 5,265,000 4,369,950 895,050 Net operating income Interest expense Tax expense Net income $ 113,000 196,000 309,000 $ 586,050 The company paid dividends of $482,050 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? 1. Average operating assets $ 2,619,500 2. Margin 17.00 % 2. Turnover 2. ROI 3. Residual income %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Joel de Paris, Incorporated Balance Sheet
Beginning
Balance
Ending Balance
Assets
Cash
Accounts receivable
Inventory
Plant and equipment, net
$ 126,000
$ 135,000
342,000
565,000
897,000
399,000
255,000
486,000
488,000
861,000
434,000
251,000
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
ces
Sales
Operating expenses
Interest and taxes:
$ 2,584,000
$ 381,000
1,048,000
1,155,000
$ 2,655,000
$ 348,000
1,048,000
1,259,000
$ 2,584,000
$ 2,655,000
$ 5,265,000
4,369,950
895,050
Net operating income
Interest expense
Tax expense
Net income
$ 113,000
196,000
309,000
$ 586,050
The company paid dividends of $482,050 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?
1. Average operating assets
$
2,619,500
2. Margin
17.00 %
2. Turnover
2. ROI
3. Residual income
%
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