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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated 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 Balance Sheet Beginning Balance $ 138,000 338,000 Ending Balance $ 128,000 477,000 567,000 807,000 410,000 482,000 803,000 434,000 252,000 248,000 $ 2,508,000 $ 389,000 1,032,000 1,087,000 $ 2,576,000 $ 343,000 1,032,000 1,201,000 Total liabilities and stockholders' equity $ 2,508,000 $ 2,576,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 119,000 196,000 $ 4,114,000 3,579,180 534,820 315,000 $ 219,820 The company paid dividends of $105,820 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%. 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. (Do not round intermediate calculations and round your final answers 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 % %

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated 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 Balance Sheet Beginning Balance $ 138,000 338,000 Ending Balance $ 128,000 477,000 567,000 807,000 410,000 482,000 803,000 434,000 252,000 248,000 $ 2,508,000 $ 389,000 1,032,000 1,087,000 $ 2,576,000 $ 343,000 1,032,000 1,201,000 Total liabilities and stockholders' equity $ 2,508,000 $ 2,576,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 119,000 196,000 $ 4,114,000 3,579,180 534,820 315,000 $ 219,820 The company paid dividends of $105,820 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%. 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. (Do not round intermediate calculations and round your final answers 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 % %

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 2PB
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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated 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 Balance Sheet Beginning Balance $ 138,000 338,000 Ending Balance $ 128,000 477,000 567,000 807,000 410,000 482,000 803,000 434,000 252,000 248,000 $ 2,508,000 $ 389,000 1,032,000 1,087,000 $ 2,576,000 $ 343,000 1,032,000 1,201,000 Total liabilities and stockholders' equity $ 2,508,000 $ 2,576,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 119,000 196,000 $ 4,114,000 3,579,180 534,820 315,000 $ 219,820 The company paid dividends of $105,820 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%. 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. (Do not round intermediate calculations and round your final answers 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 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 Balance Sheet Beginning Balance $ 138,000 338,000 Ending Balance $ 128,000 477,000 567,000 807,000 410,000 482,000 803,000 434,000 252,000 248,000 $ 2,508,000 $ 389,000 1,032,000 1,087,000 $ 2,576,000 $ 343,000 1,032,000 1,201,000 Total liabilities and stockholders' equity $ 2,508,000 $ 2,576,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 119,000 196,000 $ 4,114,000 3,579,180 534,820 315,000 $ 219,820 The company paid dividends of $105,820 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%. 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. (Do not round intermediate calculations and round your final answers 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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