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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity. Accounta payable Long-term debt Stockholders equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 122,000 200,000 1. Average operating assets 2. Margin 2. Turnover. $4,032,000 3.306,240 725,760 2. ROI 3. Residual income 322,000 $ 403,760 Beginning Balance # $ 137,000 335,000 572,000 856,000 394,000 255,000 $ 2,549,000 56 $385,000 953,000 1,211,000 $ 2,549,000 The company paid dividends of $289,760 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%. Ending Balance $ 126,000 486,000 477,000 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 round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 851,000 434,000 246,000 $ 2,620,000 $ 342,000 953,000 1,325,000 $ 2,620,000

Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity. Accounta payable Long-term debt Stockholders equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 122,000 200,000 1. Average operating assets 2. Margin 2. Turnover. $4,032,000 3.306,240 725,760 2. ROI 3. Residual income 322,000 $ 403,760 Beginning Balance # $ 137,000 335,000 572,000 856,000 394,000 255,000 $ 2,549,000 56 $385,000 953,000 1,211,000 $ 2,549,000 The company paid dividends of $289,760 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%. Ending Balance $ 126,000 486,000 477,000 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 round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? 851,000 434,000 246,000 $ 2,620,000 $ 342,000 953,000 1,325,000 $ 2,620,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cashi 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, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 122,000 200,000 $4,032,000 1,306,240 725,760 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 322,000 $403,760 Beginning Balance % $ 137,000 335,000 572,000 856,000 394,000 255,000 $ 2,549,000 % Ending Balance $ 126,000 486,000 477,000 851,000 434,000 246,000 $ 2,620,000 The company paid dividends of $289,760 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%. $385,000 953,000 1,211,000 $ 2,549,000 $ 2,620,000 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 round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 342,000 953,000 1,325,000
Transcribed Image Text:Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cashi 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, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 122,000 200,000 $4,032,000 1,306,240 725,760 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income 322,000 $403,760 Beginning Balance % $ 137,000 335,000 572,000 856,000 394,000 255,000 $ 2,549,000 % Ending Balance $ 126,000 486,000 477,000 851,000 434,000 246,000 $ 2,620,000 The company paid dividends of $289,760 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%. $385,000 953,000 1,211,000 $ 2,549,000 $ 2,620,000 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 round intermediate calculations and round your final answers to 2 decimal places.) 3. What was the company's residual income last year? $ 342,000 953,000 1,325,000
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