PROBLEM 11-17 Return on Investment (ROI) and Residual Income LO11-1, LO11-2Financial data for Joel de Paris, Inc., for last year follow:Joel de Paris, Inc.Balance SheetBeginningEndingBalanceBalanceAssetsCash$ 140,000$ 120,000Accounts receivable450,000530,000Inventory320,000380,000Plant and equipment, net680,000620,000Investment in Buisson, S.A.280,000170,000250,000Land (undeveloped)180,000Total assets$2,020,000$2,100,000Liabilities and Stockholders' EquityAccounts payable.$ 360,000$ 310,000Long-term debtStockholders' equity1,500,0001,500,000160,000290,000Total liabilities and stockholders' equity$2,020,000$2,100,000Joel de Paris, Inc.Income StatementSales$4,050,000Operating expensesNet operating income3,645,000405,000Interest and taxes:Interest expense$150,000Таx expense110,000260,000Net income$ 145,000Thecompany paid dividends of $15,000 last year. The "Investment in Buisson, S.A.," on thebalance sheet represents an investment in the stock of another company. The company's minimumrequired rate of return of 15%. 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.(Hint: Should you use net income or net operating income in your calculations?)3.What was the company's residual income last year?

Accounting Ratios: Accounting Ratios are the financial ratios through which a company can analyze…

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. (Hint: Should you use net income or net operating income in your calculations?) 3. What was the company's residual income last year?

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. (Hint: Should you use net income or net operating income in your calculations?) 3. What was the company's residual income last year?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.3.2MBA: Margin of safety Use the data from E11-12 and assume that break-even sales are $2,798 million....

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Margin of safety Use the data from E11-12 and assume that break-even sales are $2,798 million. Determine the following for Molson-Coors Brewing Company. Round to one decimal place. Margin of safety expressed as a percentage.
Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc.Balance Sheet BeginningBalance EndingBalance Assets Cash $ 138,000 $ 134,000 Accounts receivable 342,000 483,000 Inventory 580,000 473,000 Plant and equipment, net 810,000 820,000 Investment in Buisson, S.A. 400,000 435,000 Land (undeveloped) 248,000 250,000 Total assets $ 2,518,000 $ 2,595,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 340,000 Long-term debt 1,046,000 1,046,000 Stockholders' equity 1,097,000 1,209,000 Total liabilities and stockholders' equity $ 2,518,000 $ 2,595,000 Joel de Paris, Inc.Income Statement Sales $ 5,103,000 Operating expenses 4,235,490 Net operating income 867,510 Interest and taxes:…
Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, IncorporatedBalance Sheet Beginning Balance Ending Balance Assets Cash $ 139,000 $ 133,000 Accounts receivable 340,000 489,000 Inventory 560,000 487,000 Plant and equipment, net 821,000 791,000 Investment in Buisson, S.A. 395,000 434,000 Land (undeveloped) 254,000 249,000 Total assets $ 2,509,000 $ 2,583,000 Liabilities and Stockholders' Equity Accounts payable $ 378,000 $ 333,000 Long-term debt 1,041,000 1,041,000 Stockholders' equity 1,090,000 1,209,000 Total liabilities and stockholders' equity $ 2,509,000 $ 2,583,000 Joel de Paris, IncorporatedIncome Statement Sales $ 5,264,000 Operating expenses 4,369,120 Net operating income 894,880 Interest and taxes: Interest expense $ 118,000 Tax expense 207,000 325,000 Net income $ 569,880 The…
Problem 12-15 Return on Investment (ROI) and Residual Income [LO12-1, LO12-2] Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc.Balance Sheet BeginningBalance EndingBalance Assets Cash $ 129,000 $ 140,000 Accounts receivable 336,000 473,000 Inventory 561,000 477,000 Plant and equipment, net 834,000 810,000 Investment in Buisson, S.A. 400,000 432,000 Land (undeveloped) 254,000 247,000 Total assets $ 2,514,000 $ 2,579,000 Liabilities and Stockholders' Equity Accounts payable $ 384,000 $ 346,000 Long-term debt 967,000 967,000 Stockholders' equity 1,163,000 1,266,000 Total liabilities and stockholders' equity $ 2,514,000 $ 2,579,000 Joel de Paris, Inc.Income Statement Sales $ 4,324,000 Operating expenses 3,805,120 Net operating income 518,880 Interest and taxes: Interest expense 124,000 Tax expense 193,000 317,000 Net income $ 201,880…
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