Solution-Compute the company average operating assets for

Compute the company average operating assets for last year

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Reference no: EM133081701

Question - Financial data for Joel de Paris, Inc. for last year follow:

Joel de Paris, Inc balance sheet
Asserts	Beginning balance	Ending balance
Cash	$139,000	$128,000
Account receivable	346,000	489,000
Inventory	565,000	472,000
Plant and equipment, net	790,000	791,000
Investment in Buisson, SA	391,000	426,000
Land (undeveloped)	253,000	254,000
Total assets	$2,484,000	$2,560,000
Liabilities and Stockholder's Equity
Accounts payable	$389,000	$345,000
Long-term debt	1,037,000	1,037,000
Stockholders' equity	1,058,000	1,178,000
Total Liabilities and stockholders' equity	$2,484,000	$2,560,000

Joel de Paris, Inc.
Sales		$4,092,000
Operating expenses		3,396,360
Net operating income		695,640
Interest and taxes:
Interest expense	$127,000
Tax expenses	208,000	335,000
Net income		$360,640

The company paid dividends of $240,640 last year. The "Investment in Buisson, SA.," 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.

3. What was the company's residual income last year?

Reference no: EM133081701

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Compute the company average operating assets for last year

Reference no: EM133081701

Reference no: EM133081701

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