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