Financial data for Joel de Paris, Inc., for last year follow Balance Sheet nning
ID: 2471525 • Letter: F
Question
Financial data for Joel de Paris, Inc., for last year follow Balance Sheet nning Ending Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, SA. Land (undeveloped) $ 136,000 135,000 45,000 487,000 586,000 471,000 823,000 817,000 393,000 427,000 245,000 250,000 Total assets 2,508,000 $2,587,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity 374,000 333,000 986,000 986,000 1,148,000 1,268,000 Total liabilities and stockholders' equity $2,508,000 $2,587,000 Joel de Paris, Inc. Income Statement Sales Operating expenses $ 4,914,000 4,029,480 884,520 90,000 316,000 Net operating income Interest and taxes: Interest expense$ 126,000 Tax expense Net income S 568,520 The company paid dividends of $448,520 last year. The "Investment in Buisson, S.A, on the balance sheet represents an investment in the stock of another company Required: the company's margin, turnover, and return on investment (ROl) for last year. (Round your answers to 2 decimal places.) MarginExplanation / Answer
1
Calculation of Margin:
Formula :
Margin = Net income / Sales
= 568520 / 4914000 =
11.57%
2
Calculation of Turnover:
Formula :
Turnover = Sales / Average Total Assets
Sales =
4914000
Average Total Assets = (Beginning Total Assets + Ending Total Assets ) / 2
= (2508000+ 2587000) / 2 =
2547500
Turnover = 4914000 / 2547500 =
1.93 Times
3
Calculation of Return on Investment:
Formula:
Return on Investment = Net income / Average Total Assets
Net income =
568520
Average Total Assets = (Beginning Total Assets + Ending Total Assets ) / 2
= (2508000+ 2587000) / 2 =
2547500
Return on Investment = 568520 / 2547500 =
22.32%
1
Calculation of Margin:
Formula :
Margin = Net income / Sales
= 568520 / 4914000 =
11.57%
2
Calculation of Turnover:
Formula :
Turnover = Sales / Average Total Assets
Sales =
4914000
Average Total Assets = (Beginning Total Assets + Ending Total Assets ) / 2
= (2508000+ 2587000) / 2 =
2547500
Turnover = 4914000 / 2547500 =
1.93 Times
3
Calculation of Return on Investment:
Formula:
Return on Investment = Net income / Average Total Assets
Net income =
568520
Average Total Assets = (Beginning Total Assets + Ending Total Assets ) / 2
= (2508000+ 2587000) / 2 =
2547500
Return on Investment = 568520 / 2547500 =
22.32%
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