Question
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $134,000 $133,000
Financial data for Joel de Paris, Inc., for last year follow: |
Joel de Paris, Inc. Balance Sheet | ||
Beginning Balance | Ending Balance | |
Assets | ||
Cash | $134,000 | $133,000 |
Accounts receivable | 330,000 | 489,000 |
Inventory | 570,000 | 483,000 |
Plant and equipment, net | 806,000 | 775,000 |
Investment in Buisson, S.A. | 401,000 | 427,000 |
Land (undeveloped) | 248,000 | 252,000 |
Total assets | $2,489,000 | $2,559,000 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $389,000 | $336,000 |
Long-term debt | 1,031,000 | 1,031,000 |
Stockholders' equity | 1,069,000 | 1,192,000 |
Total liabilities and stockholders' equity | $2,489,000 | $2,559,000 |
|
Joel de Paris, Inc. Income Statement | ||
Sales | $4,836,000 | |
Operating expenses | 4,158,960 | |
Net operating income | 677,040 | |
Interest and taxes: | ||
Interest expense | $127,000 | |
Tax expense | 203,000 | 330,000 |
Net income | $347,040 | |
|
The company paid dividends of $34,704 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. |
Requirement 1: |
Compute the company's margin, turnover, and return on investment (ROI) for last year.(Round your answers to 2 decimal places. Omit the "%" sign in your response.) |
Margin | % |
Turnover | |
Return on investment | % |
|
Requirement 2: |
The board of directors of Joel de Paris, Inc., has set a minimum required rate ofreturn of 22%. What was the company's residual income last year?(Omit the "$" sign in your response.) |
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