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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 Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income Beginning Balance $ 383,000 1,024,000 1,131,000 Total liabilities and stockholders' equity $ 2,538,000 $ 114,000 205,000 398,000 250,000 $ 2,538,000 $ 128,000 330,000 564,000 868,000 $ 5,348,000 4,438,840 909,160 319,000 $ 590, 160 Ending Balance $ 128,000 478,000 478,000 846,000 429,000 245,000 $2,604,000 $ 340,000 1,024,000 1,240,000 $2,604,000 The company paid dividends of $481,160 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment 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 Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income Beginning Balance $ 383,000 1,024,000 1,131,000 Total liabilities and stockholders' equity $ 2,538,000 $ 114,000 205,000 398,000 250,000 $ 2,538,000 $ 128,000 330,000 564,000 868,000 $ 5,348,000 4,438,840 909,160 319,000 $ 590, 160 Ending Balance $ 128,000 478,000 478,000 846,000 429,000 245,000 $2,604,000 $ 340,000 1,024,000 1,240,000 $2,604,000 The company paid dividends of $481,160 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment 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?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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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 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 $ 114,000 205,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income Beginning Balance $ 128,000 330,000 564,000 868,000 398,000 250,000 $ 2,538,000 $ 383,000 1,024,000 1,131,000 $ 2,538,000 $ 5,348,000 4,438,840 909,160 % 319,000 $ 590,160 Ending Balance $ 128,000 478,000 478,000 846,000 429,000 245,000 $ 2,604,000 The company paid dividends of $481,160 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? $ 340,000 1,024,000 1,240,000 $ 2,604,000
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 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 $ 114,000 205,000 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income Beginning Balance $ 128,000 330,000 564,000 868,000 398,000 250,000 $ 2,538,000 $ 383,000 1,024,000 1,131,000 $ 2,538,000 $ 5,348,000 4,438,840 909,160 % 319,000 $ 590,160 Ending Balance $ 128,000 478,000 478,000 846,000 429,000 245,000 $ 2,604,000 The company paid dividends of $481,160 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? $ 340,000 1,024,000 1,240,000 $ 2,604,000
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