Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 133,000 $ 128,000 Accounts receivable 337,000 485,000 Inventory 578,000 488,000 Plant and equipment, net 872,000 859,000 Investment in Buisson, S.A. 408,000 435,000 Land (undeveloped) 251,000 249,000 Total assets $ 2,579,000 $ 2,644,000 Liabilities and Stockholders' Equity Accounts payable $ 376,000 $ 337,000 Long-term debt 958,000 958,000 Stockholders' equity 1,245,000 1,349,000 Total liabilities and stockholders' equity $ 2,579,000 $ 2,644,000 Joel de Paris, Inc. Income Statement Sales $ 5,044,000 Operating expenses 4,438,720 Net operating income 605,280 Interest and taxes: Interest expense $ 128,000 Tax expense 208,000 336,000 Net income $ 269,280 The company paid dividends of $165,280 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%. 2. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Financial data for Joel de Paris, Inc., for last year follow:

Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	133,000		$	128,000
Accounts receivable		337,000			485,000
Inventory		578,000			488,000
Plant and equipment, net		872,000			859,000
Investment in Buisson, S.A.		408,000			435,000
Land (undeveloped)		251,000			249,000
Total assets	$	2,579,000		$	2,644,000
Liabilities and Stockholders' Equity
Accounts payable	$	376,000		$	337,000
Long-term debt		958,000			958,000
Stockholders' equity		1,245,000			1,349,000
Total liabilities and stockholders' equity	$	2,579,000		$	2,644,000

Joel de Paris, Inc. Income Statement
Sales			$	5,044,000
Operating expenses				4,438,720
Net operating income				605,280
Interest and taxes:
Interest expense	$	128,000
Tax expense		208,000		336,000
Net income			$	269,280

The company paid dividends of $165,280 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%.

2. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.)

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