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 Joel de Paris, Inc. Balance

Financial data for Joel de Paris, Inc., for last year follow: Assets Cash Accounts receivable Inventory Plant and equipment, net Joel de Paris, Inc. Balance Sheet Beginning Ending Balance Balance $ 131,000 $ 132,000 344,000 487,000 570,000 489,000 805,000 782,000 403,000 426,000 248,000 247,000 $ 2,501,000 $ 2,563,000 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 Sales Joel de Paris, Inc. Income Statement Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 3,740,000 3,253,800 486,200 $ 124,000 207,000 331,000 $ 155,200 $ 374,000 $ 348,000 992,000 1,135,000 $ 2,501,000 992,000 1,223,000 $ 2,563,000 The company paid dividends of $67,200 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 "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin Turnover ROI 3. 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

Principles Of Financial And Managerial Accounting

Authors: James Don Edwards, Roger H. Hermanson

1st Edition

0256130000, 978-0256130003

More Books

Students also viewed these Accounting questions

Question

Q.1. Taxonomic classification of peafowl, Tiger and cow ?

Answered: 1 week ago

Question

Q .1. Different ways of testing the present adulterants ?

Answered: 1 week ago

Question

Q.1. Health issues caused by adulteration data ?

Answered: 1 week ago