Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc
ID: 2559849 • Letter: F
Question
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 479,000 482,000 863,000 427,000 254,000 $ 2,568,000 2,641,000 $ 135,000 136,000 343,000 560,000 882,000 402,000 246,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders equity Total liabilities and stockholders'equity $ 383,000 $331,000 1,049,000 1,261,000 1,049,000 1,136,000 2,568,000 2,641,000 Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: $4,850,000 3,977,000 873,000 Interest expense Tax expense 119,000 193,000312,000 Net income $ 561,000Explanation / Answer
beginning operating assets
ending operating assets
total of assets -Investment-land
1920000
1960000
average operating assets
(beginning operating assets + ending operating assets)/2
1940000
Margin
net operating income/sales
873000/4850000
18.00%
Turnover
sales/average operating assets
4850000/1960000
2.47449
return on investment
Margin*turnover
18%*2.47449
44.54%
net operating income
873000
Minimum required return
1960000*15%
294000
Residual income
579000
beginning operating assets
ending operating assets
total of assets -Investment-land
1920000
1960000
average operating assets
(beginning operating assets + ending operating assets)/2
1940000
Margin
net operating income/sales
873000/4850000
18.00%
Turnover
sales/average operating assets
4850000/1960000
2.47449
return on investment
Margin*turnover
18%*2.47449
44.54%
net operating income
873000
Minimum required return
1960000*15%
294000
Residual income
579000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.