C Financial data for Joel de Paris, Inc., for last year follow:Joel de Paris, Inc.Balance SheetAssetsCashAccounts receivableInventoryPlant and equipment, netInvestment in Buisson, S.A.Land (undeveloped)Total assetsLiabilities and Stockholders' EquityAccounts payableLong-term debtStockholders' equityTotal liabilities and stockholders' equityJoel de Paris, Inc.Income Statement.SalesOperating expensesNet operating incomeInterest and taxes:Interest expenseTax expenseNet income$ 123,000202,000$3,720,0003,199, 200520,800325,000$ 195,800BeginningBalanceEndingBalance$ 128,000 $ 136,000475,000342,000569,000801,000395,000253,000$ 2,488,000476,000793,000426,000254,000$ 2,560,000$ 335,000$ 381,0001,003,0001,104,0001,003,0001,222,000$2,488,000 $2,560,000The company paid dividends of $77,800 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment inthe 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. (Round "Margin", "Turnover" and "ROI" to 2decimal places.)3. What was the company's residual income last year?1. Average operating assets2.MarginTurnoverROIResidual income3.%%

AVERAGE OPERATING ASSETSAverage Operating Assets is Computed = (Beginning Operating Assets + Ending…

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. 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, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 123,000 202,000 $3,720,000 3,199,200 520,800 $ 325,000 195,800 Beginning Balance $ 128,000 $ 136,000 475,000 476,000 342,000 569,000 801,000 395,000 253,000 $2,488,000 Ending Balance $ 381,000 1,003,000 1,104,000 $ 2,488,000 793,000 426,000 254,000 $2,560,000 $ 335,000 1,003,000 1,222,000 $2,560,000 The company paid dividends of $77,800 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%.

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. 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, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 123,000 202,000 $3,720,000 3,199,200 520,800 $ 325,000 195,800 Beginning Balance $ 128,000 $ 136,000 475,000 476,000 342,000 569,000 801,000 395,000 253,000 $2,488,000 Ending Balance $ 381,000 1,003,000 1,104,000 $ 2,488,000 793,000 426,000 254,000 $2,560,000 $ 335,000 1,003,000 1,222,000 $2,560,000 The company paid dividends of $77,800 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%.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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The income statement comparison for Rush Delivery Company shows the income statement for the current and prior year. A. Determine the operating income (loss) (dollars) for each year. B. Determine the operating income (percentage) for each year. C. The company made a strategic decision to invest in additional assets in the current year. These amounts are provided. Using the total assets amounts as the investment base, calculate the ROI. Was the decision to invest additional assets in the company successful? Explain. D. Assuming an 8% cost of capital, calculate the RI for each year. Explain how this compares to your findings in part C.
The following selected data pertain to the Argent Division for last year: Required: 1. How much is the residual income? 2. How much is the return on investment? (Rounded to four significant digits.)
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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 % %
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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company’s residual income last year?
PROBLEM 11-17 Return on Investment (ROI) and Residual Income LO11-1, LO11-2 Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 620,000 Investment in Buisson, S.A. 280,000 170,000 250,000 Land (undeveloped) 180,000 Total assets $2,020,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable. $ 360,000 $ 310,000 Long-term debt Stockholders' equity 1,500,000 1,500,000 160,000 290,000 Total liabilities and stockholders' equity $2,020,000 $2,100,000 Joel de Paris, Inc. Income Statement Sales $4,050,000 Operating expenses Net operating income 3,645,000 405,000 Interest and taxes: Interest expense $150,000 Таx expense 110,000 260,000 Net income $ 145,000 The company paid dividends of $15,000 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an…
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 $ 121,000 207,000 $4,416,000 3,665,280 750,720 328,000 $ 422,720 Beginning Balance $ 136,000 339,000 568,000 857,000 395,000 251,000 $ 2,546,000 Ending Balance $ 131,000 479,000 488,000 842,000 435,000 253,000 $ 2,628,000 $ 349,000 $ 374,000 983,000 1,189,000 983,000 1,296,000 $ 2,546,000 $ 2,628,000 The company paid dividends of $315,720 last year. The “Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
Balance Sheet Beginning Balance Ending Balance Assets $ 131,000 334,000 579,000 786,000 401,000 255,000 $ 2,486,000 $ 126,000 480,000 483,000 781,000 435,000 251,000 $ 2,556,000 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 $381,000 1,020,000 1,085,000 $ 2,486,000 $ 347,000 1,020,000 1,189,000 $ 2,556,000 Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement $ 4,255,000 3,489,100 765,900 Sales Operating expenses Net operating income Interest and taxes: $ 116,000 199,000 Interest expense Тах еxpense 315,000 $ 450,900 Net income The company paid dividends of $346,900 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%.
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