Financial data for Joel de Paris, Incorporated, for last year follow:Joel de Paris, IncorporatedBalance SheetAssetsCashAccounts receivableInventoryPlant and equipment, netInvestment in Buisson, S.A.Land (undeveloped)Total assetsLiabilities and Stockholders' EquityAccounts payableLong-term debtStockholders' equityJoel de Paris, IncorporatedIncome StatementSalesOperating expensesNet operating incomeInterest and taxes:Interest expenseTax expenseNet income$ 111,000200,0001. Average operating assets2. Margin2. Turnover2. ROI3. Residual income$ 340,0001,021,0001,209,000Total liabilities and stockholders' equity $ 2,494,000 $ 2,570,000BeginningBalance$ 132,000343,000577,000788,000405,000249,000$ 2,494,000$ 5,208,0004,322,640885,360311,000$ 574,360%%$ 380,0001,021,0001,093,000EndingBalanceThe company paid dividends of $458,360 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmentin the stock of another company. The company's minimum required rate of return 15%.Required:1. Compute the company's average operating assets for last year.2. Compute the company's margin, turnover, and return on investment (ROI) for last year.Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places.3. What was the company's residual income last year?$ 127,000481,000479,000793,000435,000255,000$ 2,570,000

Average operating assets = (operating asssets at the beginning + operating assets at the end) /…

tal assets abilities and Stockholders' Equity counts payable ng-term debt ockholders' equity $ 380,000 1,021,000 1,093,000 tal liabilities and stockholders' equity $ 2,494,000 Joel de Paris, Incorporated Income Statement les erating expenses t operating income terest and taxes: Interest expense Tax expense t income $ 2,494,000 $ 111,000 200,000 $5,208,000 4,322,640 885,360 311,000 $ 574,360 $ 2,570,000 $ 340,000 1,021,000 1,209,000 $ 2,570,000 company paid dividends of $458,360 last year. The "Investment in Buisson, S.A.," on the balance sheet represent e stock of another company. The company's minimum required rate of return 15%. uired: Compute the company's average operating assets for last year. Compute the company's margin, turnover, and return on investment (ROI) for last year.

tal assets abilities and Stockholders' Equity counts payable ng-term debt ockholders' equity $ 380,000 1,021,000 1,093,000 tal liabilities and stockholders' equity $ 2,494,000 Joel de Paris, Incorporated Income Statement les erating expenses t operating income terest and taxes: Interest expense Tax expense t income $ 2,494,000 $ 111,000 200,000 $5,208,000 4,322,640 885,360 311,000 $ 574,360 $ 2,570,000 $ 340,000 1,021,000 1,209,000 $ 2,570,000 company paid dividends of $458,360 last year. The "Investment in Buisson, S.A.," on the balance sheet represent e stock of another company. The company's minimum required rate of return 15%. uired: Compute the company's average operating assets for last year. Compute the company's margin, turnover, and return on investment (ROI) for last year.

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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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet 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 Joel de Paris, Incorporated Income Statement $ 386,000 978,000 1,192,000 Total liabilities and stockholders' equity $ 2,556,000 Sales Operating expenses Net operating income. Interest and taxes: Interest expense Tax expense Net income Beginning Balance. $ 112,000 197,000 $ 130,000 346,000 563,000 871,000 400,000 246,000 $ 2,556,000 $ 3,860,000 3,242,400 617,600 309,000 $ 308,600 $ Ending Balance $ 139,000 477,000 486,000 848,000 431,000 253,000 2,634,000 $ 341,000 978,000 1,315,000 $ 2,634,000 The company paid dividends of $185,600 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
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