Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The company paid dividends of $361,240 last year. The Investment in Buisson, S.A., on the balance sheet represents an investment in the stock of another

image text in transcribed

The company paid dividends of $361,240 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 companys margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

3. What was the companys residual income last year?

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 $ 136,000 345,000 570,000 819,000 409,000 247,000 $ 2,526,000 $ 140,000 478,000 472,000 820,000 434,000 251,000 $2,595,000 $ 375,000 1,042,000 1,109,000 $ 2,526,000 $ 334,000 1,042,000 1,219,000 $2,595,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 114,000 Tax expense 201,000 Net income $ 4,914,000 4,127,760 786, 240 315,000 471,240 $

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren

3rd Edition

0131800345, 978-0131800342

More Books

Students also viewed these Accounting questions

Question

Can an employer be guilty of negligent hiring?

Answered: 1 week ago