Question
JEY-1587 Inc. reported the following data for last year: JEY-1587 Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 136,000 $ 136,000 Accounts receivable
JEY-1587 Inc. reported the following data for last year:
| JEY-1587 Inc. Balance Sheet | ||
|---|---|---|
| Beginning Balance | Ending Balance | |
| Assets | ||
| Cash | $ 136,000 | $ 136,000 |
| Accounts receivable | 346,000 | 489,000 |
| Inventory | 568,000 | 474,000 |
| Plant and equipment, net | 790,000 | 781,000 |
| Investment in Tesla Inc. | 404,000 | 431,000 |
| Land (undeveloped) | 246,000 | 246,000 |
| Total assets | $ 2,490,000 | $ 2,557,000 |
| Liabilities and Stockholders' Equity | ||
| Accounts payable | $ 376,000 | $ 343,000 |
| Long-term debt | 965,000 | 965,000 |
| Stockholders' equity | 1,149,000 | 1,249,000 |
| Total liabilities and stockholders' equity | $ 2,490,000 | $ 2,557,000 |
| JEY-1587 Inc. Income Statement | ||
|---|---|---|
| Sales | $ 4,278,000 | |
| Operating expenses | 3,593,520 | |
| Net operating income | 684,480 | |
| Interest and taxes: | ||
| Interest expense | $ 129,000 | |
| Tax expense | 207,000 | 336,000 |
| Net income | $ 348,480 | |
JEY-1587 Inc. paid dividends of $248,480 last year. The Investment in Tesla Inc. item on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%.
What was the companys residual income last year?
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The Internal Auditing Pocket Guide
Authors: J. P. Russell
1st Edition
0873895606, 978-0873895606
