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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?

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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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?
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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