The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A." on the balance sheet represents an investment in the shares of another company. Required: 1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round "Turnover" answer to 1 decimal place.) Margin Turnover ROI % Residual income % 2. The board of directors of Joel de Paris Inc. has set a minimum required return of 15%. What was the company's residual income last year?
The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A." on the balance sheet represents an investment in the shares of another company. Required: 1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round "Turnover" answer to 1 decimal place.) Margin Turnover ROI % Residual income % 2. The board of directors of Joel de Paris Inc. has set a minimum required return of 15%. 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:Financial data for Joel de Paris Inc. for last year follow:
JOEL DE PARIS INC.
Balance Sheet
Cash
Accounts receivable.
Inventory
Plant and equipment, net
Investment in Buisson, S.A.
Land (undeveloped)
Total assets
Accounts payable
Long-term debt
Shareholders' equity
Total liabilities and shareholders' equity
Tax expense
Net income
Sales
Less: Operating expenses
Net operating income
Less: Interest and taxes:
Interest expense
Margin
Turnover
ROI
Assets
%
Residual income
Liabilities and Shareholders'
30EL DE PARIS INC.
Income Statement
%
$
$ 150,000
110,000
$
$
Ending
Balance
120,000
530,000 .
380,000
620,000
280,000
170,000
2,100,000 $
Equity
$
310,000 $
1,500,000
290,000
$ 2,100,000 $
$ 4,050,000
3,645,000
405,000
260,000
$ 145,000
The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A." on the balance sheet represents an investment in
the shares of another company.
Beginning
Balance
Required:
1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round "Turnover" answer
to 1 decimal place.)
140,000
450,000
320,000
680,000
250,000
180,000
2,020,000
360,000
1,500,000
160,000
2,020,000
2. The board of directors of Joel de Paris Inc. has set a minimum required return of 15%. What was the company's residual income last
year?
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