Financial data for Joel de Paris, Inc., for last year follow:
Joel de Paris, Inc. Balance Sheet |
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Beginning Balance |
Ending Balance |
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Assets | ||||||
Cash | $ | 137,000 | $ | 140,000 | ||
Accounts receivable | 336,000 | 472,000 | ||||
Inventory | 571,000 | 479,000 | ||||
Plant and equipment, net | 846,000 | 839,000 | ||||
Investment in Buisson, S.A. | 405,000 | 430,000 | ||||
Land (undeveloped) | 251,000 | 251,000 | ||||
Total assets | $ | 2,546,000 | $ | 2,611,000 | ||
Liabilities and Stockholders' Equity | ||||||
Accounts payable | $ | 384,000 | $ | 339,000 | ||
Long-term debt | 962,000 | 962,000 | ||||
Stockholders' equity | 1,200,000 | 1,310,000 | ||||
Total liabilities and stockholders' equity | $ | 2,546,000 | $ | 2,611,000 | ||
Joel de Paris, Inc. Income Statement |
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Sales | $ | 4,966,000 | |||||||
Operating expenses | 4,221,100 | ||||||||
Net operating income | 744,900 | ||||||||
Interest and taxes: | |||||||||
Interest expense | $ | 117,000 | |||||||
Tax expense | 205,000 | 322,000 | |||||||
Net income | $ | 422,900 | |||||||
The company paid dividends of $312,900 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?
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 128,000 $ 135,000 Accounts receivable 341,000 470,000 Inventory 571,000 486,000 Plant and equipment, net 850,000 839,000 Investment in Buisson, S.A. 399,000 430,000 Land (undeveloped) 250,000 252,000 Total assets $ 2,539,000 $ 2,612,000 Liabilities and Stockholders' Equity Accounts payable $ 389,000 $ 350,000 Long-term debt 1,041,000 1,041,000 Stockholders' equity 1,109,000 1,221,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 127,000 $ 136,000 Accounts receivable 349,000 484,000 Inventory 569,000 490,000 Plant and equipment, net 835,000 810,000 Investment in Buisson, S.A. 394,000 433,000 Land (undeveloped) 251,000 249,000 Total assets $ 2,525,000 $ 2,602,000 Liabilities and Stockholders' Equity Accounts payable $ 387,000 $ 346,000 Long-term debt 952,000 952,000 Stockholders' equity 1,186,000 1,304,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 139,000 $ 132,000 Accounts receivable 344,000 484,000 Inventory 566,000 481,000 Plant and equipment, net 851,000 843,000 Investment in Buisson, S.A. 393,000 430,000 Land (undeveloped) 251,000 246,000 Total assets $ 2,544,000 $ 2,616,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 340,000 Long-term debt 963,000 963,000 Stockholders' equity 1,206,000 1,313,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 139,000 $ 131,000 Accounts receivable 349,000 475,000 Inventory 576,000 473,000 Plant and equipment, net 796,000 821,000 Investment in Buisson, S.A. 393,000 430,000 Land (undeveloped) 251,000 246,000 Total assets $ 2,504,000 $ 2,576,000 Liabilities and Stockholders' Equity Accounts payable $ 381,000 $ 335,000 Long-term debt 1,049,000 1,049,000 Stockholders' equity 1,074,000 1,192,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 125,000 $ 129,000 Accounts receivable 348,000 478,000 Inventory 574,000 488,000 Plant and equipment, net 853,000 845,000 Investment in Buisson, S.A. 393,000 425,000 Land (undeveloped) 251,000 248,000 Total assets $ 2,544,000 $ 2,613,000 Liabilities and Stockholders' Equity Accounts payable $ 380,000 $ 336,000 Long-term debt 987,000 987,000 Stockholders' equity 1,177,000 1,290,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 126,000 $ 137,000 Accounts receivable 332,000 474,000 Inventory 561,000 490,000 Plant and equipment, net 861,000 819,000 Investment in Buisson, S.A. 395,000 432,000 Land (undeveloped) 251,000 245,000 Total assets $ 2,526,000 $ 2,597,000 Liabilities and Stockholders' Equity Accounts payable $ 390,000 $ 335,000 Long-term debt 969,000 969,000 Stockholders' equity 1,167,000 1,293,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance 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 131,000 334,000 560,000 865,000 407,000 251,000 $ 2,548,000 $ 135,000 480,000 470,000 845,000 433,000 247,000 $ 2,610,000 $ 383,000 973,000 1,192,000 $ 2,548,000 $ 332,000 973,000 1,305,000...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance 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 134,000 349.000 564,000 863.000 404.000 252,000 $ 2,566,000 $ 137.000 485.000 480,000 848,000 433.000 247,000 $2,630,000 383,000 962,000 1,221,000 $ 2,566,000 $ 341,000 962,000 1,327,000 $2,630,000 Joel...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 137,000 $ 128,000 Accounts receivable 334,000 480,000 Inventory 578,000 480,000 Plant and equipment, net 881,000 882,000 Investment in Buisson, S.A. 398,000 430,000 Land (undeveloped) 247,000 252,000 Total assets $ 2,575,000 $ 2,652,000 Liabilities and Stockholders' Equity Accounts payable $ 384,000 $ 340,000 Long-term debt 984,000 984,000 Stockholders' equity 1,207,000 1,328,000 Total liabilities and stockholders' equity $...
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 129,000 $ 132,000 Accounts receivable 340,000 479,000 Inventory 577,000 476,000 Plant and equipment, net 794,000 793,000 Investment in Buisson, S.A. 401,000 427,000 Land (undeveloped) 255,000 249,000 Total assets $ 2,496,000 $ 2,556,000 Liabilities and Stockholders' Equity Accounts payable $ 389,000 $ 344,000 Long-term debt 971,000 971,000 Stockholders' equity 1,136,000 1,241,000 Total liabilities and stockholders' equity $...