60.1K

Verified Solution

Link Copied!

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 $ 133,000 339,000 576,000 872,000 400,000 252,000 $ 2,572,000 $ 127,000 483,000 485,000 865,000 428,000 247,000 $2,635,000 $ 379,000 999,000 1,194,000 $ 2,572,000 $ 349,000 999,000 1,287,000 $ 2,635,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 122,000 Tax expense 197,000 Net income $ 5,432,000 4,617,200 814,800 319,000 495,800 $ The company paid dividends of $402,800 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? 1. 2. Average operating assets Margin 15.00% Turnover ROI Residual income

Answer & Explanation Solved by verified expert

See Answer