Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 131,000 $ 136,000 Accounts receivable 333,000 483,000 Inventory 577,000 485,000 Plant and equipment, net 889,000 866,000 Investment in Buisson, S.A. 396,000 435,000 Land (undeveloped) 247,000 254,000 Total assets $ 2,573,000 $ 2,659,000 Liabilities and...

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Accounting

Joel de Paris, Inc.
Balance Sheet
Beginning
Balance Ending
Balance
Assets
Cash $ 131,000 $ 136,000
Accounts receivable 333,000 483,000
Inventory 577,000 485,000
Plant and equipment, net 889,000 866,000
Investment in Buisson, S.A. 396,000 435,000
Land (undeveloped) 247,000 254,000
Total assets $ 2,573,000 $ 2,659,000
Liabilities and Stockholders'Equity
Accounts payable $ 384,000 $ 331,000
Long-term debt 1,021,000 1,021,000
Stockholders' equity 1,168,000 1,307,000
Total liabilities and stockholders' equity $ 2,573,000 $ 2,659,000

Joel de Paris, Inc.
Income Statement
Sales $ 4,290,000
Operating expenses 3,646,500
Net operating income 643,500
Interest and taxes:
Interest expense $ 121,000
Tax expense 195,000 316,000
Net income $ 327,500

The company paid dividends of $188,500 last year. The “Investmentin Buisson, S.A.,” on the balance sheet represents an investment inthe stock of another company. The company's minimum required rateof return of 15%.
Required:
1. Compute the company's average operating assets for lastyear.
2. Compute the company’s margin, turnover, and return oninvestment (ROI) for last year. (Do not round intermediatecalculations and round your final answers to 2 decimalplaces.)
3. What was the company’s residual income last year?

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3.7 Ratings (305 Votes)

Ans Assets Beginning balance Ending balance Cash 131000 136000 Accounts receivables 333000 483000 Inventory 577000 485000 Plant and equipment 889000 866000 Total operating assets 1930000 1970000 See Answer

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Accounting

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Joel de Paris, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	131,000	$	136,000
Accounts receivable		333,000		483,000
Inventory		577,000		485,000
Plant and equipment, net		889,000		866,000
Investment in Buisson, S.A.		396,000		435,000
Land (undeveloped)		247,000		254,000
Total assets	$	2,573,000	$	2,659,000
Liabilities and Stockholders'Equity
Accounts payable	$	384,000	$	331,000
Long-term debt		1,021,000		1,021,000
Stockholders' equity		1,168,000		1,307,000
Total liabilities and stockholders' equity	$	2,573,000	$	2,659,000

Joel de Paris, Inc. Income Statement
Sales			$	4,290,000
Operating expenses				3,646,500
Net operating income				643,500
Interest and taxes:
Interest expense	$	121,000
Tax expense		195,000		316,000
Net income			$	327,500