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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Beginning Balance Ending Balance $ 125,000 $ 134,000 334,000 566,000 885,000 394,000 249,000 483,000 472,000 861,000 429,000 246,000 $ 2,553,000 Cash Accounts receivable Inventory Plant and equipment, net Land (undeveloped) Investment in Buisson, S.A. 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 Interest and taxes: $ 5,018,000 4,215,120 802,880 $ 389,000 1,020,000 1,144,000 $ 2,625,000 $ 332,000 1,020,000 1,273,000 $ 2,553,000 $ 2,625,000 Net operating income Interest expense Tax expense Net income $ 114,000 207,000 321,000 $ 481,880 The company paid dividends of $352,880 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 % %

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Beginning Balance Ending Balance $ 125,000 $ 134,000 334,000 566,000 885,000 394,000 249,000 483,000 472,000 861,000 429,000 246,000 $ 2,553,000 Cash Accounts receivable Inventory Plant and equipment, net Land (undeveloped) Investment in Buisson, S.A. 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 Interest and taxes: $ 5,018,000 4,215,120 802,880 $ 389,000 1,020,000 1,144,000 $ 2,625,000 $ 332,000 1,020,000 1,273,000 $ 2,553,000 $ 2,625,000 Net operating income Interest expense Tax expense Net income $ 114,000 207,000 321,000 $ 481,880 The company paid dividends of $352,880 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 % %

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
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Financial data for Joel de Paris, Incorporated, for last year follow: Assets Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance $ 125,000 $ 134,000 334,000 483,000 566,000 472,000 885,000 861,000 394,000 249,000 429,000 246,000 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 Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: $ 2,553,000 $ 389,000 1,020,000 1,144,000 $ 2,625,000 $ 332,000 1,020,000 1,273,000 $ 2,553,000 $ 2,625,000 $ 5,018,000 4,215,120 802,880 Net operating income Interest expense Tax expense Net income $ 114,000 207,000 321,000 $ 481,880 The company paid dividends of $352,880 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: Assets Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance $ 125,000 $ 134,000 334,000 483,000 566,000 472,000 885,000 861,000 394,000 249,000 429,000 246,000 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 Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: $ 2,553,000 $ 389,000 1,020,000 1,144,000 $ 2,625,000 $ 332,000 1,020,000 1,273,000 $ 2,553,000 $ 2,625,000 $ 5,018,000 4,215,120 802,880 Net operating income Interest expense Tax expense Net income $ 114,000 207,000 321,000 $ 481,880 The company paid dividends of $352,880 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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