Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cooh Accounts receivable

image text in transcribed
image text in transcribed
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cooh Accounts receivable Inventory plant and equipment, net Investment in Buisson, S.A Land (undeveloped) Total assets Liabilities and Stockholders' quity Accounts payable Long-term debt stockholders equity Total liabilities and stockholdera equity 139,000 332,000 573,000 826,000 392,000 246,000 $2,500,000 $ 136,000 479,000 472,000 823,000 434,000 254,000 $ 2.598,000 . 375.000 5 140,000 961,000 961,000 1, 174,000 1.289.000 $ 2,500,000 $2,590,000 Joel de Paris, 10 Income Statement Sales Operating expenses Net operating income Interest and taxes Interest expense $ 126,000 n 206.000 Not Incom $ 4.725,000 4.110.250 614,250 332,000 $ 202,250 The company paid dividends of $167,250 last year. The "Investment in Bulsson, 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%. Joel de Paris, Inc. Income statement Sales Operating expenses Net operating income Interest and taxes Interest expense $ 126,000 Tax expense 206,000 Net income $ 4,725,000 4,110,750 614,250 332,000 282,250 $ The company pald dividends of $167,250 last year. The "Investment in Buisson, S.A.W 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. 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

Financial Intelligence For Entrepreneurs What You Really Need To Know About The Numbers

Authors: Karen Berman, Joe Knight

1st Edition

1422119157, 9781422119150

More Books

Students also viewed these Accounting questions

Question

What are HR ethics?

Answered: 1 week ago

Question

What does corporate sustainability mean?

Answered: 1 week ago