Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance $ 136,000 472,000 Assets Cash 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 $ 133,000 340,000 573,000 804,000 409,000 247,000 $ 2,506,000 $ 374,000 1,044,000 1,088,000 483,000 799,000 429,000 249,000 $ 2,568,000 $ 331,000 1,044,000 1,193,000 $ 2,506,000 $ 2,568,000 Sales $ 4,675,000 Operating expenses Net operating income 4,114,000 561,000 Interest and taxes: Interest expense Tax expense $ 130,000 202,000 332,000 $ 229,000 Net income The company paid dividends of $124,000 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 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last vear?

Joel de Paris, Incorporated Balance Sheet Beginning Balance Ending Balance $ 136,000 472,000 Assets Cash 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 $ 133,000 340,000 573,000 804,000 409,000 247,000 $ 2,506,000 $ 374,000 1,044,000 1,088,000 483,000 799,000 429,000 249,000 $ 2,568,000 $ 331,000 1,044,000 1,193,000 $ 2,506,000 $ 2,568,000 Sales $ 4,675,000 Operating expenses Net operating income 4,114,000 561,000 Interest and taxes: Interest expense Tax expense $ 130,000 202,000 332,000 $ 229,000 Net income The company paid dividends of $124,000 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 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. Note: Round "Margin", "Turnover" and "ROI" to 2 decimal places. 3. What was the company's residual income last vear?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5CE

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Current Attempt in Progress XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g.…
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