Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Plant and equipment, net Inventory 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 $ 131,000 346,000 568,000 815,000 396,000 250,000 $ 374,000 993,000 1,139,000 $ 2,506,000 $ 129,000 471,000 470,000 830,000 430,000 246,000 $ 2,576,000 $ 336,000 993,000 1,247,000 $ 2,576,000 $ 2,506,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 116,000 199,000 4,324,000 3,761,880 562,120 315,000 $ 247,120 The company paid dividends of $139,120 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. (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 %6 %
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Plant and equipment, net Inventory 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 $ 131,000 346,000 568,000 815,000 396,000 250,000 $ 374,000 993,000 1,139,000 $ 2,506,000 $ 129,000 471,000 470,000 830,000 430,000 246,000 $ 2,576,000 $ 336,000 993,000 1,247,000 $ 2,576,000 $ 2,506,000 Joel de Paris, Incorporated Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 116,000 199,000 4,324,000 3,761,880 562,120 315,000 $ 247,120 The company paid dividends of $139,120 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. (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 %6 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow:
Joel de Paris, Incorporated
Balance Sheet
Beginning
Balance
Ending Balance
Assets
Cash
Accounts receivable
Plant and equipment, net
Inventory
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
$ 131,000
346,000
568,000
815,000
396,000
250,000
$ 374,000
993,000
1,139,000
$ 2,506,000
$ 129,000
471,000
470,000
830,000
430,000
246,000
$ 2,576,000
$ 336,000
993,000
1,247,000
$ 2,576,000
$ 2,506,000
Joel de Paris, Incorporated
Income Statement
Sales
Operating expenses
Interest and taxes:
Net operating income
Interest expense
Tax expense
Net income
$ 116,000
199,000
4,324,000
3,761,880
562,120
315,000
$ 247,120
The company paid dividends of $139,120 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. (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
%6
%
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