60.1K

Verified Solution

Link Copied!

Problem 11-15 Return on Investment (ROI) and Residual Income (LO11-1, LO11-2] 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 335, eee 568, eee 865.000 406, eee 250, eee 2,556,000 $ 129,080 476,000 477.eee 858.000 434,eee 255, eee $ 2,629,eee 373,000 ,eei, eee 182,000 556.000 348,eee 1.001.ee 1,280,00 $ 2,629,00 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $ 125,000 Tax expense 194,000 Net income $ 4,416,000 3,665, 280 750, 720 319.000 431,720 The company paid dividends of $333,720 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% de Paris - page 533) - 5 points i Stockholders equity Total liabilities and stockholders' equity 82, $ 2,556,900 $ 2,62 $ 4,416,000 3,665, 280 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense $125.eea Tax expense 194. Bee Net income 31,72e The company paid dividends of $333,720 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 1. 2 Average operating assets Margin Turnover ROI Residual income 3 Score answer >

Answer & Explanation Solved by verified expert

See Answer