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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 139,800 346,00e 565,000 860,000 396,80e 251,000 139,00e 479, 000 476, eee 856, eee 430,000 250,000 Total assets $ 2,557,000 $ 2,630,e0e Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 381,000 1,ee7,e0e 1,169,00e $ 2,557,000 345,800 1,007, 000 1,278,e00 $ 2,630,e0e Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: $ 4,053,800 3,323,469 729,540 Interest expense Тах еxpense $ 121,000 193, еее 314,000 Net income 415,548 The company paid dividends of $306,540 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%. Requlred: 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 Intermedlate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin Turnover ROI 1. 2. 3. Residual income

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) 139,800 346,00e 565,000 860,000 396,80e 251,000 139,00e 479, 000 476, eee 856, eee 430,000 250,000 Total assets $ 2,557,000 $ 2,630,e0e Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 381,000 1,ee7,e0e 1,169,00e $ 2,557,000 345,800 1,007, 000 1,278,e00 $ 2,630,e0e Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: $ 4,053,800 3,323,469 729,540 Interest expense Тах еxpense $ 121,000 193, еее 314,000 Net income 415,548 The company paid dividends of $306,540 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%. Requlred: 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 Intermedlate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? Average operating assets Margin Turnover ROI 1. 2. 3. Residual income

Managerial Accounting: The Cornerstone of Business Decision-Making
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
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets 139,e00 346,000 565,000 860, 000 396,000 251,000 $ 2,557,00e 139, e00 479, e00 476, e00 856, e00 430, e00 250, 000 Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets $ 2,630, e00 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 381,000 1, 807,000 1,169,000 345, e0e 1,007, e90 1,278, 000 Total liabilities and stockholders' equity $ 2,557,006e $ 2,630, 00e Joel de Paris, Inc. Income Statement $ 4,053,000 3,323,460 729,540 Sales Operating expenses Net operating income Interest and taxes: Interest expense Тах еxpense $ 121,000 193,000 314,000 Net income 415,540 The company paid dividends of $306,540 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%. Requlred: 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 Intermedlate calculatlons and round your final answers to 2 declmal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin Turnover ROI 3. Residual income
Transcribed Image Text:Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets 139,e00 346,000 565,000 860, 000 396,000 251,000 $ 2,557,00e 139, e00 479, e00 476, e00 856, e00 430, e00 250, 000 Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets $ 2,630, e00 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 381,000 1, 807,000 1,169,000 345, e0e 1,007, e90 1,278, 000 Total liabilities and stockholders' equity $ 2,557,006e $ 2,630, 00e Joel de Paris, Inc. Income Statement $ 4,053,000 3,323,460 729,540 Sales Operating expenses Net operating income Interest and taxes: Interest expense Тах еxpense $ 121,000 193,000 314,000 Net income 415,540 The company paid dividends of $306,540 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%. Requlred: 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 Intermedlate calculatlons and round your final answers to 2 declmal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin Turnover ROI 3. Residual income
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