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please solve all required, also please double check work. if u get correct i will leave a thumbs up ! Problem 11-17 (Algo) Return on
please solve all required, also please double check work. if u get correct i will leave a thumbs up !
Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2) 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 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 $ 126,000 335,000 579,000 840,000 399,000 253,000 $ 2,532,000 $ 127,000 485,000 470,000 B38,000 427,000 253,000 $ 2,600,000 $ 384,000 987,000 1,161,000 $ 2,532,000 $ 346,000 987,000 1,267,000 $ 2,600,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 126,000 Tax expense 191,000 Net Income $4,560,000 4,012,800 547,200 $ 317,000 230,200 The company paid dividends of $124,200 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 (RON for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year Step by Step Solution
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