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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. (Round "Margin", "Turnover" and decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2 Margin Turnover ROI Residual income 3. % %

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. (Round "Margin", "Turnover" and decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2 Margin Turnover ROI Residual income 3. % %

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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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, Inc. Incone Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 207,000 $4,347,000 3,608,010 738,990 1. Average operating assets 2 Margin Turnover ROI Residual income 328,000 $ 410,990 Beginning Balance % 5 % Ending Balance 139,000 $ 140,000 334,000 490,000 579,000 818,000. 405,000 250,000 $ 2,526,000 The company paid dividends of $303,990 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% 481,000 799,000 429,000 252,000 $2,591,000 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? $ 341,000 $ 383,000 1,020,000 1,123,000 1,020,000 1,230,000 $2,526,000 $2,591,000
Transcribed Image Text: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, Inc. Incone Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 207,000 $4,347,000 3,608,010 738,990 1. Average operating assets 2 Margin Turnover ROI Residual income 328,000 $ 410,990 Beginning Balance % 5 % Ending Balance 139,000 $ 140,000 334,000 490,000 579,000 818,000. 405,000 250,000 $ 2,526,000 The company paid dividends of $303,990 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% 481,000 799,000 429,000 252,000 $2,591,000 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? $ 341,000 $ 383,000 1,020,000 1,123,000 1,020,000 1,230,000 $2,526,000 $2,591,000
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