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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 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 $ 139,000 330,000 $ 128,000 490,000 578,000 483,000 833,000 819,000 391,000 435,000 255,000 246,000 $ 2,526,000 $ 373,000 1,004,000 1,149,000 $ 2,526,000 $ 2,601,000 $ 344,000 1,004,000 1,253,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement Sales $ 4,560,000 Operating expenses Net operating income 3,876,000 684,000 Interest and taxes: $ 122,000 195,000 317,000 $ 367,000 Interest expense Tax expense Net income The company paid dividends of $263,000 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 Balance Sheet Beginning Balance Ending Balance 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 $ 139,000 330,000 $ 128,000 490,000 578,000 483,000 833,000 819,000 391,000 435,000 255,000 246,000 $ 2,526,000 $ 373,000 1,004,000 1,149,000 $ 2,526,000 $ 2,601,000 $ 344,000 1,004,000 1,253,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement Sales $ 4,560,000 Operating expenses Net operating income 3,876,000 684,000 Interest and taxes: $ 122,000 195,000 317,000 $ 367,000 Interest expense Tax expense Net income The company paid dividends of $263,000 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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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 $ 139,000 330,000 $ 128,000 490,000 578,000 483,000 833,000 819,000 391,000 435,000 255,000 246,000 $ 2,526,000 $ 373,000 1,004,000 1,149,000 $ 2,526,000 $ 2,601,000 $ 344,000 1,004,000 1,253,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement Sales $ 4,560,000 Operating expenses Net operating income 3,876,000 684,000 Interest and taxes: $ 122,000 195,000 317,000 $ 367,000 Interest expense Tax expense Net income The company paid dividends of $263,000 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 Balance Sheet Beginning Balance Ending Balance 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 $ 139,000 330,000 $ 128,000 490,000 578,000 483,000 833,000 819,000 391,000 435,000 255,000 246,000 $ 2,526,000 $ 373,000 1,004,000 1,149,000 $ 2,526,000 $ 2,601,000 $ 344,000 1,004,000 1,253,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement Sales $ 4,560,000 Operating expenses Net operating income 3,876,000 684,000 Interest and taxes: $ 122,000 195,000 317,000 $ 367,000 Interest expense Tax expense Net income The company paid dividends of $263,000 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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