Problem 11-15 (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 Ending Balance Balance Assets 126,000 486,000 474,000 814,000 427,000 252,000 $ 2,579,000 137,000 346,000 578,000 799,000 395,000 252,000 2$ Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) $ 2,507,000 Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 380,000 964,000 1,163,000 $ 2,507,000 347,000 964,000 1,268,000 $ 2,579,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 4,700,000 4,089,000 611,000 Sales Operating expenses Net operating income Interest and taxes: $ 117,000 202,000 Interest expense 319,000 xpense 292,000 Net income The company paid dividends of $187,000 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. Average operating assets 2. Margin Turnover ROI 3. Residual income Problem 11-15 (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 Ending Balance Balance Assets 126,000 486,000 474,000 814,000 427,000 252,000 $ 2,579,000 137,000 346,000 578,000 799,000 395,000 252,000 2$ Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) $ 2,507,000 Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 380,000 964,000 1,163,000 $ 2,507,000 347,000 964,000 1,268,000 $ 2,579,000 Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement $ 4,700,000 4,089,000 611,000 Sales Operating expenses Net operating income Interest and taxes: $ 117,000 202,000 Interest expense 319,000 xpense 292,000 Net income The company paid dividends of $187,000 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. Average operating assets 2. Margin Turnover ROI 3. Residual income
