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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 Beginning Balance Ending Balance $ 126,000 484,000 475,000 $ 126,000 340,000 572,000 822,000 815,000 406,000 434,000 247,000 251,000 $ 2,513,000 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 Sales Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest and taxes: Tax expense Interest expense Net income $377,000 992,000 1,144,000 $2,585,000 $ 331,000 992,000 1,262,000 $ 2,513,000 $ 2,585,000 $ 5,076,000 4,213,080 862,920 $ 126,000 197,000 323,000 $539,920 The company paid dividends of $421,920 last year. The "Investment in Buisson, S.A.," on the balan n the stock of another company. The company's minimum required rate of return 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 "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year?

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 Beginning Balance Ending Balance $ 126,000 484,000 475,000 $ 126,000 340,000 572,000 822,000 815,000 406,000 434,000 247,000 251,000 $ 2,513,000 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 Sales Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest and taxes: Tax expense Interest expense Net income $377,000 992,000 1,144,000 $2,585,000 $ 331,000 992,000 1,262,000 $ 2,513,000 $ 2,585,000 $ 5,076,000 4,213,080 862,920 $ 126,000 197,000 323,000 $539,920 The company paid dividends of $421,920 last year. The "Investment in Buisson, S.A.," on the balan n the stock of another company. The company's minimum required rate of return 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 "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last year?

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
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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 Beginning Balance $ 126,000 340,000 Ending Balance $ 126,000 484,000 572,000 822,000 406,000 475,000 815,000 434,000 247,000 251,000 $ 2,513,000 $ 2,585,000 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 $377,000 992,000 1,144,000 $ 331,000 992,000 1,262,000 $ 2,513,000 $ 2,585,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 126,000 197,000 $ 5,076,000 4,213,080 862,920 323,000 $ 539,920 The company paid dividends of $421,920 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%. 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 "Margin", "Turnover" and "ROI" 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 % %
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 Beginning Balance $ 126,000 340,000 Ending Balance $ 126,000 484,000 572,000 822,000 406,000 475,000 815,000 434,000 247,000 251,000 $ 2,513,000 $ 2,585,000 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 $377,000 992,000 1,144,000 $ 331,000 992,000 1,262,000 $ 2,513,000 $ 2,585,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 126,000 197,000 $ 5,076,000 4,213,080 862,920 323,000 $ 539,920 The company paid dividends of $421,920 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%. 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 "Margin", "Turnover" and "ROI" 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 % %
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