10hw-3

Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance 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 5 137,600 334,000 569,600 850,00 394,000 250,000 52,534,000 5 137,000 477,000 480,000 836,000 430,000 251,800 $ 2,611,000 $ 381,000 $ 347,000 1,018,000 1,018,000 1,135,000 1,246,600 $ 2,534,000 5 2,611,000 Joel de Paris, The Income Statement Sales Operating expenses Net operating income Interest and taxes Interest expense $ 110,000 Tax expense 209,000 tiet Income $ 5,348,000 4,545,800 802,200 319,000 483,200 $ The company paid dividends of $372 200 last year. The investment in Buisson SA on the balance sheet represents on 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.) 3. What was the company's residual income last year? Total liabilities and stockholders equity 2,534,00 > 2,611, UN Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 110,000 Tax expense 209,000 Net Income $ 5,348,000 4,545,800 802,200 319,00 483,200 $ The company paid dividends of $372,200 last year. The "Investment in Buisson, SA, 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.) 3. What was the company's residual income last year? 1 2 % Average operating assets Margin Turnover ROI Residual income 9 3