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 Beginning Ending Balance Balance Assets Cash $ 133,

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Beginning Ending Balance Balance Assets Cash $ 133, 000 $ 135, 000 Accounts receivable 343,000 484, 000 Inventory 575, 000 479 , 000 Plant and equipment, net 789, 000 782, 000 Investment in Buisson, S.A. 398, 000 435, 000 Land ( undeveloped) 248, 000 254,000 Total assets $ 2, 486, 000 $ 2,569,000 Liabilities and Stockholders' Equity Accounts payable $ 372, 000 $ 333,000 Long-term debt 1, 010, 000 1, 010, 000 Stockholders' equity 1, 104, 000 1, 226, 000 Total liabilities and stockholders' equity $ 2, 486, 000 $ 2,569, 000 Joel de Paris, Incorporated Income Statement Sales $ 4,836, 000 Operating expenses 4, 158, 960 Net operating income 677, 040 Interest and taxes: Interest expense $ 122,000 Tax expense 204, 000 326, 000 Net income $ 351, 040The company paid dividends of $229,040 last year. The \"Investment in Buisson, 8A.,\" on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of15%. 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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Lawrence A. Tomassini

4th Edition

0072994029, 9780072994025

More Books

Students also viewed these Accounting questions

Question

d. In what sports does the person consult?

Answered: 1 week ago

Question

2. To store it and

Answered: 1 week ago