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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 "ROI" to 2 decimal places.) 3. What was the company’s residual income last year?

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?

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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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?

 

The company pald dividends of $69,280 last year. The "Investment in Bulsson, 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%. Requlred: 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 "Margln", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin Turnover ROI 3. Residual income
Transcribed Image Text:The company pald dividends of $69,280 last year. The "Investment in Bulsson, 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%. Requlred: 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 "Margln", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin Turnover ROI 3. Residual income
Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets 135, eee 481, e00 Cash $ 126, 000 334,000 576,000 Accounts receivable Inventory Plant and equipment, net 482,000 Investment in Buisson, S.A. Land (undeveloped) 834,000 399, 000 248, e0e 812,000 427,000 245, 000 Total assets $ 2,517,000 $ 2,582, 000e Liabilities and Stockholders' Equity Accounts payable 373,000 342, 000 1,032, 000 1,208, eee $ 2,582, 000 1,832, 000 Long-term debt Stockholders' equity 1,112,00e Total liabilities and stockholders' equity $ 2,517,000 Joel de Paris, Inc. Income Statement $ 3,969,000 3,492,720 Sales Operating expenses Net operating income 476, 280 Interest and taxes: $ 119,000 192, e00 Interest expense Тах еxpensе 311, 000 Net income 165, 280
Transcribed Image Text:Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets 135, eee 481, e00 Cash $ 126, 000 334,000 576,000 Accounts receivable Inventory Plant and equipment, net 482,000 Investment in Buisson, S.A. Land (undeveloped) 834,000 399, 000 248, e0e 812,000 427,000 245, 000 Total assets $ 2,517,000 $ 2,582, 000e Liabilities and Stockholders' Equity Accounts payable 373,000 342, 000 1,032, 000 1,208, eee $ 2,582, 000 1,832, 000 Long-term debt Stockholders' equity 1,112,00e Total liabilities and stockholders' equity $ 2,517,000 Joel de Paris, Inc. Income Statement $ 3,969,000 3,492,720 Sales Operating expenses Net operating income 476, 280 Interest and taxes: $ 119,000 192, e00 Interest expense Тах еxpensе 311, 000 Net income 165, 280
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