Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land...

 

Transcribed Image Text:

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 Beginning Balance $ 128,000 335,000 Ending Balance $ 135,000 476,000 576,000 477,000 821,000 812,000 403,000 431,000 247,000 252,000 $ 2,583,000 $ 2,510,000 $ 381,000 1,035,000 1,094,000 $ 340,000 1,035,000 1,208,000 $ 2,510,000 $ 2,583,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 128,000 200,000 $ 4,888,000 4,203,680 684,320 328,000 $ 356,320 The company paid dividends of $242,320 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.) 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 Beginning Balance $ 128,000 335,000 Ending Balance $ 135,000 476,000 576,000 477,000 821,000 812,000 403,000 431,000 247,000 252,000 $ 2,583,000 $ 2,510,000 $ 381,000 1,035,000 1,094,000 $ 340,000 1,035,000 1,208,000 $ 2,510,000 $ 2,583,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 128,000 200,000 $ 4,888,000 4,203,680 684,320 328,000 $ 356,320 The company paid dividends of $242,320 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.)

Answer rating: 100% (QA)

Lets proceed with the calculations using the provided social security tax rate of 60 and Medicare ta... View the full answer