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The company paid dividends of $164,420 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment n the stock of another company. The company's minimum required rate of return of 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %

The company paid dividends of $164,420 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment n the stock of another company. The company's minimum required rate of return of 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %

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, 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 Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 193,000 $ 4,053,000 3,485,580 567,420 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 314,000 $ 253,420 Beginning Balance % $ 137,000 331,000 565,000 % 877,000 397,000 252,000 $ 2,559,000 $ 371,000 1,002,000 1,186,000 Ending Balance $ 126,000 479,000 480,000 865,000 The company paid dividends of $164,420 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%. 426,000 251,000 $ 2,627,000 $ 350,000 1,002,000 1,275,000 $ 2,559,000 $ 2,627,000 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year?
Transcribed Image Text: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 Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 193,000 $ 4,053,000 3,485,580 567,420 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 314,000 $ 253,420 Beginning Balance % $ 137,000 331,000 565,000 % 877,000 397,000 252,000 $ 2,559,000 $ 371,000 1,002,000 1,186,000 Ending Balance $ 126,000 479,000 480,000 865,000 The company paid dividends of $164,420 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%. 426,000 251,000 $ 2,627,000 $ 350,000 1,002,000 1,275,000 $ 2,559,000 $ 2,627,000 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year?
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