Assets Cash Accounts receivable Inventory Plant and equipment, net Joel de Paris, Incorporated Balance Sheet Beginning...

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Assets Cash Accounts receivable Inventory Plant and equipment, net Joel de Paris, Incorporated Balance Sheet Beginning Balance $ 135,000 342,000 Ending Balance $ 135,000 485,000 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 572,000 791,000 396,000 249,000 488,000 772,000 425,000 245,000 $ 2,485,000 $ 374,000 1,042,000 1,069,000 $ 2,550,000 $ 343,000 1,042,000 1,165,000 $ 2,485,000 $ 2,550,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 111,000 200,000 $ 5,022,000 4,318,920 703,080 311,000 $ 392,080 The company paid dividends of $296,080 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.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % % Assets Cash Accounts receivable Inventory Plant and equipment, net Joel de Paris, Incorporated Balance Sheet Beginning Balance $ 135,000 342,000 Ending Balance $ 135,000 485,000 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 572,000 791,000 396,000 249,000 488,000 772,000 425,000 245,000 $ 2,485,000 $ 374,000 1,042,000 1,069,000 $ 2,550,000 $ 343,000 1,042,000 1,165,000 $ 2,485,000 $ 2,550,000 Income Statement Sales Operating expenses Interest and taxes: Net operating income Interest expense Tax expense Net income $ 111,000 200,000 $ 5,022,000 4,318,920 703,080 311,000 $ 392,080 The company paid dividends of $296,080 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.) 3. What was the company's residual income last year? 1. Average operating assets 2. Margin 2. Turnover 2. ROI 3. Residual income % %

Answer rating: 100% (QA)

To compute the companys average operating assets margin turnover return on investment R... View the full answer