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 Cash Accounts receivable

Financial data for Joel de Paris, Inc., for last year follow:

image text in transcribed

image text in transcribed

Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash Accounts receivable Inventory Plant and equipment, net 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 $ 139,000 330,000 576,000 815,000 400,000 252,000 $ 2,512,000 $ 130,000 480,000 475,000 815,000 427,000 252,000 $ 2,579,000 $ 379,000 988,000 1,145,000 $ 2,512,000 $ 337,000 988,000 1,254,000 $ 2,579,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 110,000 Tax expense 99,0 Net income $ 4,324,000 3,632,160 691,840 319,000 372,840 $ The company paid dividends of $263,840 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. 2 % Average operating assets Margin Turnover ROI Residual income % 3

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

Auditing And Assurance Services

Authors: William Messier, Steven Glover, Douglas Prawitt

8th Edition

ISBN: 0078025435, 9780078025433

More Books

Students also viewed these Accounting questions

Question

=+b) Explain carefully what your interval means.

Answered: 1 week ago