Financial Data for Joel de Paris, Inc. Assignment | Top Universities
January 30th, 2020
Financial data for Joel de Paris, Inc., for last year follow:
| Joel de Paris, Inc. Balance Sheet |
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| Beginning Balance |
Ending Balance |
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| Assets | ||||||
| Cash | $ | 137,000 | $ | 140,000 | ||
| Accounts receivable | 337,000 | 480,000 | ||||
| Inventory | 561,000 | 474,000 | ||||
| Plant and equipment, net | 795,000 | 776,000 | ||||
| Investment in Buisson, S.A. | 403,000 | 431,000 | ||||
| Land (undeveloped) | 245,000 | 253,000 | ||||
| Total assets | $ | 2,478,000 | $ | 2,554,000 | ||
| Liabilities and Stockholders' Equity | ||||||
| Accounts payable | $ | 383,000 | $ | 346,000 | ||
| Long-term debt | 970,000 | 970,000 | ||||
| Stockholders' equity | 1,125,000 | 1,238,000 | ||||
| Total liabilities and stockholders' equity | $ | 2,478,000 | $ | 2,554,000 | ||
| Joel de Paris, Inc. Income Statement |
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| Sales | $ | 4,625,000 | |||||||
| Operating expenses | 3,931,250 | ||||||||
| Net operating income | 693,750 | ||||||||
| Interest and taxes: | |||||||||
| Interest expense | $ | 114,000 | |||||||
| Tax expense | 193,000 | 307,000 | |||||||
| Net income | $ | 386,750 | |||||||
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The company paid dividends of $273,750 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? Get Accounting homework help today
