Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Financial data for Joel de Paris, Inc. for last year follow. Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets $ 137,000 $
Financial data for Joel de Paris, Inc. for last year follow. Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance Assets $ 137,000 $ 127.000 Accounts receivable 340.000 472.000 Inventory 566,000 487,000 Plant and equipment, net 787,000 279.000 Investment in Buisson, S.A. 392.000 433,000 Land (undeveloped) 245,000 251,000 Total assets $2,467,000 $2,554,000 Liabilities and stockholders' Seholders' Equity Accounts payable $ 371,000 $ 340.000 Long-term debt 998,000 998,000 Stockholders' equity 1,098,000 1,216,000 Total liabilities and $2,467,000 $2,554,000 stockholders equity Joel de Paris, Inc. Income Statement $3,700,000 Operating 3,219,000 expenses Net operating 481,000 income Interest and taxes Interest $115,000 expense Tax expense 204,000 319,000 Net income $ 162,000 The company paid dividends of $44.000 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: 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. (Round "Margin", "Turnover" and "ROIT to 2 decimal places.) 3. What was the companys residual income last year? Average operating assets Margin Turnover ROI 3. Residual income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started