Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial data for Joel de Paris, Inc., for last year follow: Assets Cash Accounts receivable: Inventory Plant and equipment, net Investment in Buisson, S.A.

image text in transcribedimage text in transcribed

Financial data for Joel de Paris, Inc., for last year follow: Assets Cash Accounts receivable: Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance $ 127,000 $ 129,000 333,000 487,000 573,000 483,000 857,000 831,000 406,000 434,000 251,000 249,000 $ 2,613,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 2,547,000 $ 385,000 1,019,000 1,143,000 $ 2,547,000 $ 338,000 1,019,000 1,256,000 $ 2,613,000 Sales Joel de Paris, Inc. Income Statement Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $113,000 191,000 $ 4,584,000 3,988,080 595,920 304,000 $ 291,920 Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income. $ 4,584,000 3,988,080 595,920 $113,000 191,000 304,000 $ 291,920 The company paid dividends of $178.920 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. (Round "Mergin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual Income last year? 1 Average operating assets 2 Margin Turnover 3 ROI Residual income % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

What are three important characteristics of a sound wave?

Answered: 1 week ago

Question

Briefly describe three important coding schemes.

Answered: 1 week ago

Question

Describe how data could be transmitted using frequency modulation.

Answered: 1 week ago