Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance 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 $ 133,000 $ 136,000 340,000 472,000 573,000 483,000 804,000 799,000 409,000 429,000 247,000 249,000 $ 2,506,000 $ 374,000 1,044,000 1,088,000 $ 2,568,000. $ 331,000 1,044,000 1,193,000 $ 2,506,000 $ 2,568,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense $ 130,000 202,000 $ 4,675,000 4,114,000 561,000 332,000 Net income $ 229,000 The company paid dividends of $124,000 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?
Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance 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 $ 133,000 $ 136,000 340,000 472,000 573,000 483,000 804,000 799,000 409,000 429,000 247,000 249,000 $ 2,506,000 $ 374,000 1,044,000 1,088,000 $ 2,568,000. $ 331,000 1,044,000 1,193,000 $ 2,506,000 $ 2,568,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense $ 130,000 202,000 $ 4,675,000 4,114,000 561,000 332,000 Net income $ 229,000 The company paid dividends of $124,000 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?
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
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
$ 133,000
$ 136,000
340,000
472,000
573,000
483,000
804,000
799,000
409,000
429,000
247,000
249,000
$ 2,506,000
$ 374,000
1,044,000
1,088,000
$ 2,568,000.
$ 331,000
1,044,000
1,193,000
$ 2,506,000
$ 2,568,000
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Tax expense
$ 130,000
202,000
$ 4,675,000
4,114,000
561,000
332,000
Net income
$ 229,000
The company paid dividends of $124,000 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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