mucaon.comhm.tpx e D ezto.mheducation.com/hm.tpx 5.00 points Financial data for
ID: 2477180 • Letter: M
Question
mucaon.comhm.tpx e D ezto.mheducation.com/hm.tpx 5.00 points Financial data for Joel de Paris, Inc., for last year follow Joel de Panis, Inc. Balance Sheet Beginning Ending Balance Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, SA Land (undeveloped S 134000 $ 134,000 43,000 489,000 574,000 477.000 849,000 840,000 394,000 429.00 248,000 246,000 Total assets $2.542000 $2.615,000 Liabilities and Stockholders' Equ Accounts payable Long-term debt Stockholders equity 377,000 $ 333,000 1012,000 1,012.000 1153,000 1,270,000 Total liabilities and stockholders' equity $2.542.000 $2.615,000 Joel de Paris, Inc Income Statement Sales Operating expenses $ 4224 000 3.590.400 Net operating income Interest and taxes 633,600 Interest expense Tax expense $ 115.000 210.000 325 000 s 308.600 Net income The company paid dividends of $191 600 last year The 'investment in Buisson S A on sheet represents an investment in the stock of another company Required: os t nmert (R for last ysr Roind your onswers to 2 decimal places) Margn Tumaver ROExplanation / Answer
4.
Margin = Net income / Sales x 100 = $ 308,600 / $ 4,224,000 x 100 = 7.31%
Turnover = Sales / Average operating assets = $ 4,224,000 / $ 2,223,500 = 1.90 times
ROI = Net income / Average operating assets x 100 = $ 308,600 / $ 2,223,500 x 100 = 13.89%
2.
5. 1.
2. Reject the new product line
3. Adding the new product line would increase the company's overall ROI
4. a.
b. Accept the new product line.
Margin 7.31% Turnover 1.90 times ROI 13.89%Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.