Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance…
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Question “Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance…”
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc. Balance Sheet | ||||||
Beginning Balance | Ending Balance | |||||
Assets | ||||||
Cash | $ | 135,000 | $ | 128,000 | ||
Accounts receivable | 348,000 | 471,000 | ||||
Inventory | 561,000 | 485,000 | ||||
Plant and equipment, net | 836,000 | 836,000 | ||||
Investment in Buisson, S.A. | 403,000 | 428,000 | ||||
Land (undeveloped) | 251,000 | 249,000 | ||||
Total assets | $ | 2,534,000 | $ | 2,597,000 | ||
Liabilities and Stockholders’ Equity | ||||||
Accounts payable | $ | 377,000 | $ | 339,000 | ||
Long-term debt | 1,024,000 | 1,024,000 | ||||
Stockholders’ equity | 1,133,000 | 1,234,000 | ||||
Total liabilities and stockholders’ equity | $ | 2,534,000 | $ | 2,597,000 | ||
Joel de Paris, Inc. Income Statement | |||||||||
Sales | $ | 5,320,000 | |||||||
Operating expenses | 4,522,000 | ||||||||
Net operating income | 798,000 | ||||||||
Interest and taxes: | |||||||||
Interest expense | $ | 117,000 | |||||||
Tax expense | 198,000 | 315,000 | |||||||
Net income | $ | 483,000 | |||||||
The company paid dividends of $382,000 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%.
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?
Comparative data on three companies in the same service industry
are given below.
Required:
2. Fill in the missing information. (Round the
“Turnover” and “ROI” answers to 2 decimal places.)
Answer
Conclusion
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