The company paid dividends of $407,440 last year. The "Investment in Buisson, S.A.," on the balance sheet represents an investmentin the stock of another company. The company's minimum required rate of return of 15%.Required:1. Compute the company's average operating assets for last year.2. Compute the company's margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2decimal places.)3. What was the company's residual income last year?X Answer is complete but not entirely correct.Average operatingassets$ 1,900,000 X1.2.Margin20.39 X %Turnover2.12 XROI43.203.Residual income$541,440 Financial data for Joel de Paris, Inc., for last year follow:Joel de Paris, Inc.Balance SheetBeginningEndingBalanceBalanceAssets140,000333,000569,000858,000394,000$128,000488,000486,000838,000434,000Cash$Accounts receivableInventoryPlant and equipment, netInvestment in Buisson, S.A.Land (undeveloped)250,000$ 2,624,000255,000Total assets$ 2,549,000Liabilities and Stockholders' EquityAccounts payableLong-term debtStockholders' equity$377,000$340,000974,000974,0001,198,0001,310,000Total liabilities and stockholders' equity$ 2,549,000$ 2,624,000Joel de Paris, Inc.Income Statement$ 4,608,0003,778,560829,440SalesOperating expensesNet operating incomeInterest and taxes:$ 116,000194,000Interest expenseТах ехpense310,000Net income$519,440

1. AVERAGE OPERATING ASSETS : = ( BEGINNING TOTAL OPERATING ASSET + ENDING TOTAL OPERATING ASSET )…

The company paid dividends of $407,440 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%. 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? X Answer is complete but not entirely correct. Average operating $ 1,900,000 × 1. assets 2. Margin 20.39 X % Turnover 2.12 X ROI 43.20 % 3. Residual income $ 541,440

The company paid dividends of $407,440 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%. 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. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company's residual income last year? X Answer is complete but not entirely correct. Average operating $ 1,900,000 × 1. assets 2. Margin 20.39 X % Turnover 2.12 X ROI 43.20 % 3. Residual income $ 541,440

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1FSA: Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at...

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