Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment,

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet 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 Joel de Paris, Incorporated Income Statement Beginning Balance Ending Balance $ 140,000 340,000 $ 125,000 575,000 477,000 484,000 845,000 854,000 407,000 432,000 253,000 250,000 $2,560,000 $2,622,000 $388,000 $ 341 000 1,012,000 1,012,000 1,160,000 1,269,000 $ 2,560,000 $2,622,000 Sales Operating expenses Net operating income Interest and taxes: $ 114,000 208,000 Interest expense Tax expense Net income $ 5,184,000 4,510,080 673,920 322,000 $ 351,920 The company paid dividends of $242,920 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 "Margin", "Turnover" and "ROI" to 2 darimal niaree 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 2. Turnover 2. 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

Bookkeeping And Cost Accounting For Factories

Authors: William Kent, John Wiley And Sons, Chapman And Hall

1st Edition

102189897X, 978-1021898975

More Books

Students also viewed these Accounting questions

Question

Lo6 Identify several management development methods.

Answered: 1 week ago