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 $ 117,000 193,000 Beginning Balance $ 132,000 335,000 568,000 805,000 392,000 245,000 $ 2,477,000 $ 4,836,000 4,207,320 628, 680 Ending Balance 310,000 $318,680 $ 132,000 477,000 486,000 $ 373,000 $ 337,000 980,000 1,124,000 980,000 1,243,000 $ 2,477,000 $ 2,560,000 785,000 428,000 252,000 $ 2,560,000 The company paid dividends of $199,680 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 15%.
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 $ 117,000 193,000 Beginning Balance $ 132,000 335,000 568,000 805,000 392,000 245,000 $ 2,477,000 $ 4,836,000 4,207,320 628, 680 Ending Balance 310,000 $318,680 $ 132,000 477,000 486,000 $ 373,000 $ 337,000 980,000 1,124,000 980,000 1,243,000 $ 2,477,000 $ 2,560,000 785,000 428,000 252,000 $ 2,560,000 The company paid dividends of $199,680 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 15%.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...
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