FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question
Financial data for Joel de Paris, Incorporated, for last year follow.
Joel de Paris, Incorporated Balance Sheet
Assets
Cash
Accounts receivable
Beginning
Balance
$ 127,000
348,000
Ending Balance
$ 140,000
481,000
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
566,000
839,000
398,000
246,000
$ 2,524,000
488,000
811,000
431,000
250,000
$ 383,000
1,038,000
1,103,000
$ 2,524,000
$ 2,601,000
$ 333,000
1,038,000
1,230,000
$ 2,601,000
Joel de Paris, Incorporated Income Statement
$ 4,370,000
Sales
Operating expenses
Net operating income
Interest and taxes:
Interest expense
Tax expense
Net income
$ 112,000
195,000
3,627,100
742,900
307,000
$ 435,900
The company paid dividends of $308,900 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 is 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: 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
%
96
expand button
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow. Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Beginning Balance $ 127,000 348,000 Ending Balance $ 140,000 481,000 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 566,000 839,000 398,000 246,000 $ 2,524,000 488,000 811,000 431,000 250,000 $ 383,000 1,038,000 1,103,000 $ 2,524,000 $ 2,601,000 $ 333,000 1,038,000 1,230,000 $ 2,601,000 Joel de Paris, Incorporated Income Statement $ 4,370,000 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 112,000 195,000 3,627,100 742,900 307,000 $ 435,900 The company paid dividends of $308,900 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 is 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: 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 % 96
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education