Subject: acounting Financial data for Joel de Paris, Inc., for last year follow:Joel de Paris, Inc.Balance SheetAssetsCashAccounts receivableInventoryPlant and equipment, netInvestment in Buisson, S.A.Land (undeveloped)Total assetsLiabilities and Stockholders' EquityAccounts payableLong-term debtStockholders' equityTotal liabilities and stockholders' equityJoel de Paris, Inc.Income StatementSalesOperating expensesNet operating incomeInterest and taxes:Interest expenseTax expenseNet income$ 116,000191,000$5,404,0004,485,320918,680$307,000611,680BeginningBalanceEndingBalance$ 139,000 $ 131,000344,000477,000563,000482,000864,000860,000406,000435,000250,000255,000$ 2,566,000$ 2,640,000381,000966,0001,219,000$ 2,566,000341,000966,0001,333,000$ 2,640,000 The company paid dividends of $497,680 last year. The "Investment in Buisson, S.A.," on the balance sheetrepresents 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. (Do not roundintermediate calculations and round your final answers to 2 decimal places.)3. What was the company's residual income last year?1.2.3.Average operating assetsMarginTurnoverROIResidual income%%

Return on Investment - Return on Investment is income earned on the assets invested by the…

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet 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 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $116,000 191,000 $5,404,000 4,485,320 918,680 $ 307,000 611,680 Beginning Balance $ 139,000 $ 131,000 344,000 563,000 864,000 406,000 250,000 $ 2,566,000 Ending Balance 381,000 966,000 1,219,000 $ 2,566,000 477,000 482,000 860,000 435,000 255,000 $ 2,640,000 341,000 966,000 1,333,000 $ 2,640,000

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet 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 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $116,000 191,000 $5,404,000 4,485,320 918,680 $ 307,000 611,680 Beginning Balance $ 139,000 $ 131,000 344,000 563,000 864,000 406,000 250,000 $ 2,566,000 Ending Balance 381,000 966,000 1,219,000 $ 2,566,000 477,000 482,000 860,000 435,000 255,000 $ 2,640,000 341,000 966,000 1,333,000 $ 2,640,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4E

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