Financial data for Joel de Paris, Inc., for last year follow:   Joel de Paris, Inc.Balance Sheet   BeginningBalance   EndingBalance Assets Cash $ 140,000   $ 120,000   Accounts receivable   450,000     530,000   Inventory   320,000     380,000   Plant and equipment, net   680,000     620,000   Investment in Buisson, S.A.   250,000     280,000   Land (undeveloped)   180,000     170,000   Total assets $ 2,020,000   $ 2,100,000   Liabilities and Stockholders' Equity Accounts payable $ 360,000   $ 310,000   Long-term debt   1,500,000     1,500,000   Stockholders' equity   160,000     290,000   Total liabilities and stockholders' equity $ 2,020,000   $ 2,100,000       Joel de Paris, Inc.Income Statement   Sales         $ 4,050,000   Operating expenses           3,645,000   Net operating income           405,000   Interest and taxes:               Interest expense $ 150,000           Tax expense   110,000       260,000   Net income         $ 145,000       The company paid dividends of $15,000 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%.       1. average operating assets   2. margin                                   %   turnover     ROI                                   %   Residual income

Question

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

 

Joel de Paris, Inc.
Balance Sheet
  Beginning
Balance
  Ending
Balance
Assets
Cash $ 140,000   $ 120,000  
Accounts receivable   450,000     530,000  
Inventory   320,000     380,000  
Plant and equipment, net   680,000     620,000  
Investment in Buisson, S.A.   250,000     280,000  
Land (undeveloped)   180,000     170,000  
Total assets $ 2,020,000   $ 2,100,000  
Liabilities and Stockholders' Equity
Accounts payable $ 360,000   $ 310,000  
Long-term debt   1,500,000     1,500,000  
Stockholders' equity   160,000     290,000  
Total liabilities and stockholders' equity $ 2,020,000   $ 2,100,000  
 

 

Joel de Paris, Inc.
Income Statement
 
Sales         $ 4,050,000  
Operating expenses           3,645,000  
Net operating income           405,000  
Interest and taxes:              
Interest expense $ 150,000          
Tax expense   110,000       260,000  
Net income         $ 145,000  
   


The company paid dividends of $15,000 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%.

 

 

 

1. average operating assets  
2. margin                                   %
  turnover  
  ROI                                   %
  Residual income  

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