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Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net $ 126,000 $ 135,000 342,000 565,000 897,000 399,000 255,000 486,000 488,000 861,000 434,000 251,000 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 ces Sales Operating expenses Interest and taxes: $ 2,584,000 $ 381,000 1,048,000 1,155,000 $ 2,655,000 $ 348,000 1,048,000 1,259,000 $ 2,584,000 $ 2,655,000 $ 5,265,000 4,369,950 895,050 Net operating income Interest expense Tax expense Net income $ 113,000 196,000 309,000 $ 586,050 The company paid dividends of $482,050 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 $ 2,619,500 2. Margin 17.00 % 2. Turnover 2. ROI 3. Residual income %

Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net $ 126,000 $ 135,000 342,000 565,000 897,000 399,000 255,000 486,000 488,000 861,000 434,000 251,000 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 ces Sales Operating expenses Interest and taxes: $ 2,584,000 $ 381,000 1,048,000 1,155,000 $ 2,655,000 $ 348,000 1,048,000 1,259,000 $ 2,584,000 $ 2,655,000 $ 5,265,000 4,369,950 895,050 Net operating income Interest expense Tax expense Net income $ 113,000 196,000 309,000 $ 586,050 The company paid dividends of $482,050 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 $ 2,619,500 2. Margin 17.00 % 2. Turnover 2. ROI 3. Residual income %

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net $ 126,000 $ 135,000 342,000 565,000 897,000 399,000 255,000 486,000 488,000 861,000 434,000 251,000 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 ces Sales Operating expenses Interest and taxes: $ 2,584,000 $ 381,000 1,048,000 1,155,000 $ 2,655,000 $ 348,000 1,048,000 1,259,000 $ 2,584,000 $ 2,655,000 $ 5,265,000 4,369,950 895,050 Net operating income Interest expense Tax expense Net income $ 113,000 196,000 309,000 $ 586,050 The company paid dividends of $482,050 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 $ 2,619,500 2. Margin 17.00 % 2. Turnover 2. ROI 3. Residual income %
Transcribed Image Text:Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net $ 126,000 $ 135,000 342,000 565,000 897,000 399,000 255,000 486,000 488,000 861,000 434,000 251,000 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 ces Sales Operating expenses Interest and taxes: $ 2,584,000 $ 381,000 1,048,000 1,155,000 $ 2,655,000 $ 348,000 1,048,000 1,259,000 $ 2,584,000 $ 2,655,000 $ 5,265,000 4,369,950 895,050 Net operating income Interest expense Tax expense Net income $ 113,000 196,000 309,000 $ 586,050 The company paid dividends of $482,050 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 $ 2,619,500 2. Margin 17.00 % 2. Turnover 2. ROI 3. Residual income %
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