Financial data for Joel de Paris, Inc., for last year follow: The company paid dividends of $15,000
Question:
Financial data for Joel de Paris, Inc., for last year follow:
The company paid dividends of $15,000 last year. The “Investment in Buisson, S.A.,” on the balance sheet represents an investment in the stock of another company.
Required:
1. Compute the company’s margin, turnover, and return on investment (ROT) for last year.
2. The board of directors of Joel de Paris, Inc., has set a minimum required rate of return of 15%. What was the company’s residual income last year?
Transcribed Image Text:
Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets $ 140,000 $ 120,000 Cash Accounts receivable 450,000 530,000 380,000 Inventory 320,000 Plant and equipment, net 680,000 620,000 Investment in Buisson, S.A 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $2,020,000 $2,100,000 Liabilities and Stockholders' Equity $ 360,000 S 310,000 Accounts payable 1,500,000 Long-tem debt 1,500,000 Stockholders' debt 160,000 290,000 Total liabilities and stockholders' equity $2,020,000 $2,100,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (21 reviews)
1 Operating assets do not include investments in other com...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Question Posted:
Students also viewed these Managerial Accounting questions
-
Financial data for Joel de Paris Inc. for last year follow: The company paid dividends of $15,000 last year. The ?Investment in Buisson, S.A.? on the balance sheet represents an investment in the...
-
Return on investment and residual income Required Supply the missing information in the following table for Ren Company. Sales ROI $396,000 Operating assets Operating income Turnover 2.2 Residual...
-
Return on investment and residual income Required Supply the missing information in the following table for TolbertCompany. $264,000 Sales ROI Operating assets Operating income Turnover Residual...
-
Yamini and Fatima, two students of Class IX of a school, together contributed Rs. 100 towards the Prime Ministers Relief Fund to help the earthquake victims. Write a linear equation which satisfies...
-
What does it mean for four events to be exhaustive?
-
An important unit consists of two components placed in parallel. The unit performs satisfactorily if one of the two components is operating. Therefore, only one component is operated at a time, but...
-
When we use beta in the linear equation of the security market line, it is the: a. Intercept b. Slope c. X-variable d. F-variable
-
Mussatto Company expects to produce 50,000 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead $18....
-
Explain why no maxima or minima exist. Minimize f(x,y) = -24x-6y subject to -6x-2y = 80. Choose the best explanation below for why no maxima or minima exis A. The value of is 0. OB. Fx =0 and Fy = 0...
-
Change Purse Inc. is a small business that is planned to be located in a small Nova Scotia town. The town was incorporated in 1889 and, like many communities in Nova Scotia, it prides itself on being...
-
There is often more than one way to improve a performance measure. Unfortunately, some of the actions taken by managers to make their performance look better may actually harm the organization. For...
-
The contribution format income statement for Huerra Company for last year is given below: The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the companys...
-
What planning engagements can the tax professional offer? Why is he or she in an ideal position to offer these services?
-
1.help analyze the strict limit allocation operations by the ministry to the exchequer management reinforcement 2.what happens in the overspending criterion for the approval of excess recovery in the...
-
Determine the meaning of words and phrases as they are used in the text, including figurative and connotative meanings. In the figurative language inAct IV, Scene iii, lines 39-41, of The Tragedy of...
-
Runge Company purchased machinery on January 1 at a list price of $300,000, with credit terms 2/10, n/30. Payment was made within the discount period. Runge paid $15,000 sales tax on the machinery...
-
Write a function to find the shortest path between two nodes in a graph using Dijkstra's algorithm.
-
Jackson Co. has the following information for the first 4 months of this year: Machine hours Cleaning Hours Expense January 2,100. $900 February 2,600 1,200 March 1,600 800 April 2,000 1,000...
-
The BiFET diff-amp input stage in Figure P13.61 is biased at \(I_{O 1}=1 \mathrm{~mA}\). The JFET parameters are \(V_{P}=4 \mathrm{~V}, I_{D S S}=1 \mathrm{~mA}\), and \(\lambda=0.02...
-
3M Company reports the following financial statement amounts in its 10-K report: a. Compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. (Receivables turnover and...
-
Why is boron oxide often added to silica glass?
-
What are the similarities between a job order and a process cost system?
-
Your roommate is confused about the features of process cost accounting. Identify and explain the distinctive features for your roommate.
-
Your roommate is confused about the features of process cost accounting. Identify and explain the distinctive features for your roommate.
-
Here is financial information for Sandhill Inc. December 31, 2022 December 31, 2021 Current assets $124,600 $100,000 Plant assets (net) 394,800 329,000 Current liabilities 120,572 73,000 Long-term...
-
Jones Distributing Company uses the perpetual inventory system and engaged in the following transactions during December of the current year: (Click the icon to view the transactions.) Required 1....
-
5. Given the following cost expenditures (see Table P6.3) for a small bridge job to include direct and indirect charges (but not bank interest): A. Calculate the peak financial requirement. B. Sketch...
Study smarter with the SolutionInn App