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 Beginning Balance Ending Balance $ 127,000 $ 135,000 343,000 477,000 577,000 488,000 813,000 800,000 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 Sales Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income $ 127,000 195,000 $ 3,948,000 3,434,760 513,240 322,000 $ 191,240 402,000 249,000 $ 2,511,000 $ 379,000 1,048,000 1,084,000 426,000 253,000 $ 2,579,000 $ 344,000 1,048,000 1,187,000 $ 2,511,000 $ 2,579,000 The company paid dividends of $88,240 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? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 2. Turnover 2. ROI $ 2,294,000 ( 4.84 1.72 % 8.34 % 3. Residual income $ (152,860) x
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 Beginning Balance Ending Balance $ 127,000 $ 135,000 343,000 477,000 577,000 488,000 813,000 800,000 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 Sales Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income $ 127,000 195,000 $ 3,948,000 3,434,760 513,240 322,000 $ 191,240 402,000 249,000 $ 2,511,000 $ 379,000 1,048,000 1,084,000 426,000 253,000 $ 2,579,000 $ 344,000 1,048,000 1,187,000 $ 2,511,000 $ 2,579,000 The company paid dividends of $88,240 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? Answer is complete but not entirely correct. 1. Average operating assets 2. Margin 2. Turnover 2. ROI $ 2,294,000 ( 4.84 1.72 % 8.34 % 3. Residual income $ (152,860) x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Gadubhai
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
Beginning
Balance
Ending Balance
$ 127,000
$ 135,000
343,000
477,000
577,000
488,000
813,000
800,000
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
Sales
Joel de Paris, Incorporated
Income Statement
Operating expenses
Net operating income
Interest expense
Interest and taxes:
Tax expense
Net income
$ 127,000
195,000
$ 3,948,000
3,434,760
513,240
322,000
$ 191,240
402,000
249,000
$ 2,511,000
$ 379,000
1,048,000
1,084,000
426,000
253,000
$ 2,579,000
$ 344,000
1,048,000
1,187,000
$ 2,511,000
$ 2,579,000
The company paid dividends of $88,240 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?
Answer is complete but not entirely correct.
1. Average operating assets
2. Margin
2. Turnover
2. ROI
$ 2,294,000 (
4.84
1.72
%
8.34 %
3. Residual income
$ (152,860) x
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