Solution-Compute the company average operating assets for

Compute the company average operating assets for last year

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Reference no: EM133116731

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

Joel de Paris, Incorporated Balance Sheet
	Beginning Balance	Ending Balance
Assets
Cash	$136,000	$140,000
Accounts receivable	337,000	474,000
Inventory	563,000	490,000
Plant and equipment, net	794,000	766,000
Investment in Buisson, S.A.	404,000	428,000
Land (undeveloped)	246,000	255,000
Total assets	$2,480,000	$2,553,000
Liabilities and Stockholders' Equity
Accounts payable	$379,000	$338,000
Long-term debt	1,002,000	1,002,000
Stockholders' equity	1,099,000	1,213,000
Total liabilities and stockholders' equity	$2,480,000	$2,553,000

Joel de Paris, Incorporated Income Statement
Sales		$4,070,000
Operating expenses		3,540,900
Net operating income		529,100
Interest and taxes:
Interest expense	$130,000
Tax expense	203,000	333,000
Net income		$196,100

The company paid dividends of $82,100 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.

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

Reference no: EM133116731

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Compute the company average operating assets for last year

Reference no: EM133116731

Reference no: EM133116731

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