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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 $ 150,000 110,000 1. Average operating assets 2. Margin 2. Turnover 2 ROI 3 Residual income $4,050,000 3,645,000 405,000 The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. $ 2,020,000 > 2,100,000 260,000 $ 145,000 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. Note: Round "Turnover" to 1 decimal place. 3. What was the company's residual income last year? % %

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 $ 150,000 110,000 1. Average operating assets 2. Margin 2. Turnover 2 ROI 3 Residual income $4,050,000 3,645,000 405,000 The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. $ 2,020,000 > 2,100,000 260,000 $ 145,000 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. Note: Round "Turnover" to 1 decimal place. 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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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 $ 150,000 110,000 Beginning Balance $ 4,050,000 3,645,000 405,000 $ 140,000 450,000 250,000 180,000 $ 2,020,000 260,000 $ 145,000 320,000 680,000 $360,000 1,500,000 160,000 $ 2,020,000 Ending Balance $ 120,000 530,000 380,000 620,000 280,000 170,000 $ 2,100,000 $ 310,000 1,500,000 290,000 $ 2,100,000
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 $ 150,000 110,000 Beginning Balance $ 4,050,000 3,645,000 405,000 $ 140,000 450,000 250,000 180,000 $ 2,020,000 260,000 $ 145,000 320,000 680,000 $360,000 1,500,000 160,000 $ 2,020,000 Ending Balance $ 120,000 530,000 380,000 620,000 280,000 170,000 $ 2,100,000 $ 310,000 1,500,000 290,000 $ 2,100,000
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 $ 150,000 110,000 1. Average operating assets 2. Margin 2. Turnover 2 R01 3. Residual income $ 4,050,000 3,645,000 405,000 $2,020,000 >2,100,000 260,000 $ 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 stock of another company. The company's minimum required rate of return is 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 "Turnover" to 1 decimal place. 3. What was the company's residual income last year? % %
Transcribed Image Text: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 $ 150,000 110,000 1. Average operating assets 2. Margin 2. Turnover 2 R01 3. Residual income $ 4,050,000 3,645,000 405,000 $2,020,000 >2,100,000 260,000 $ 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 stock of another company. The company's minimum required rate of return is 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 "Turnover" to 1 decimal place. 3. What was the company's residual income last year? % %
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