Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Balance Sheet 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 Joel de Paris, Incorporated Beginning Balance $ 128,000 335,000 Ending Balance $ 135,000 476,000 576,000 477,000 821,000 812,000 403,000 431,000 247,000 252,000 $ 2,583,000 $ 2,510,000 $ 381,000 1,035,000 1,094,000 $ 340,000 1,035,000 1,208,000 $ 2,510,000 $ 2,583,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 128,000 200,000 $ 4,888,000 4,203,680 684,320 328,000 $ 356,320 The company paid dividends of $242,320 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Balance Sheet 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 Joel de Paris, Incorporated Beginning Balance $ 128,000 335,000 Ending Balance $ 135,000 476,000 576,000 477,000 821,000 812,000 403,000 431,000 247,000 252,000 $ 2,583,000 $ 2,510,000 $ 381,000 1,035,000 1,094,000 $ 340,000 1,035,000 1,208,000 $ 2,510,000 $ 2,583,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 128,000 200,000 $ 4,888,000 4,203,680 684,320 328,000 $ 356,320 The company paid dividends of $242,320 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. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
Expert Answer:
Answer rating: 100% (QA)
Lets proceed with the calculations using the provided social security tax rate of 60 and Medicare ta... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
For the year just completed, Hanna Company had net income of $81,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows:...
-
Use the Lab 6 environment for this question. The Marketing department wants a report showing Products sold during February 2020. They want the results sorted descending by sales revenue for each...
-
Study the human resources practices of an organisation of your choice and respond to the following questions for each Question 1 Discuss whether the adoption of a strategic human resources approach...
-
Write the boldfaced numbers in each problem in scientific notation. The largest of the 50 United States is Alaska, with land area of about 365,482,000 acres, while the smallest is Rhode Island, with...
-
Discuss how a customer decision-making tree can help a retailer define a category.
-
Each year thousands of high school students take either the SAT or the ACT, standardized tests used in the college admissions process. Combined SAT Math and Verbal scores go as high as 1600, while...
-
Gloria Cosmetics uses a normal cost system and has the following balances at the end of its first years operations: Prepare journal entries for two different ways to dispose of the year-end overhead...
-
On July 1, 2017, Amos Corporation granted nontransferable, nonqualified stock options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos's...
-
Solve the equation in the complex number system. x-12x+37=0 The solution set is. (Use a comma to separate answers as needed.)
-
If the input is 7, the output is: 7 pears. 1 #include 2 using namespace std; 3 4 int main(){ 5 int numPears
-
The authors, in describing the Nolan model, state that different parts of a single organization may well be at different stages of growth with respect to a single IT. What implications does this have...
-
What might be the role of IT in the human resource initiatives, mentioned by the authors as critical to the change management process?
-
To which area of accounting are generally accepted accounting principles primarily relevant? a. Managerial accounting b. Financial accounting c. Tax accounting d. Financial reporting to all...
-
Consider the six organizational forms discussed by the authors: has any emerged as the dominant paradigm in the late199 0s/early2000s? are the forms mutually exclusive? What are some variants? ...
-
Generally accepted accounting principles are: a. A set of guidelines to aid in the financial reporting process b. A set of laws to prevent financial fraud c. A set of standards for ethical conduct d....
-
If one decides to consume alcoholic beverages, there are a number of harm-reduction approaches to make responsible decisions. Which is one of these strategies? drink quickly at the beginning of the...
-
The overall reaction and equilibrium constant value for a hydrogenoxygen fuel cell at 298 K is 2H 2 (g) + O 2 (g) 2H 2 O(l) K = 1.28 10 83 a. Calculate E cell and G 8 at 298 K for the fuel cell...
-
Bolivia currently has a nominal 1-year risk-free interest rate of 40 percent, which is primarily due to the high level of expected inflation. The U.S. nominal 1-year risk-free interest rate is 8...
-
Effect of September 11 on Forward Rate Forecasts. The September 11, 2001, terrorist attack on the United States was quickly followed by lower interest rates in the United States. How would this...
-
Assume that interest rate parity exists and it will continue to exist in the future. Assume that interest rates of the United States and the United Kingdom vary substantially in many periods. You...
Study smarter with the SolutionInn App