https/ html apter 11 Homework 9 Fnancial data for Joel de Paris, Inc. for last y
ID: 2549412 • Letter: H
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https/ html apter 11 Homework 9 Fnancial data for Joel de Paris, Inc. for last year follow Joel de Paris, Inc Balance Sheet Beginning Ending Balance Assets Cash Accounts receivable $ 132,000 126,000 Inventory Plant and equipment, net Investment in Buisson, 5.A. Land (undeveloped) Total assets 330,0 486,900 576,000 451,8 852,000 837,800 246,2460 $2,539,000 $2,606,000 tiabilities and Stockholders Equity Accounts payable ewranons Long-term debt Stockholders' equity Total 1iabilities and stockholders equity 979,800 979,889 1.172,000 1,291,899 $2,539,00e $2,6e6,30 Joel de Paris, Inc. Incone Statenent 34,811,00 Operating expensers Net operating 721,980 Interest and taxns interest expense $120,000 Tax expense Net income s 408 O Type here to search hp 144Explanation / Answer
1.
Ending Balances Beginning Balances
Cash $126,000 $132,000
Accounts receivable 486,000 330,000
Inventory 481,000 576,000
Plant and equipment (net) 837,000 852,000
Total operating assets $1,930,000 $1,890,000
Average operating assets = ($1,930,000 + $1,890,000)/2
Average operating assets = $1,910,000
2. Margin = Net operating income/Sales
Margin = $721,900/$4,011,000
Margin = 18%
Turnover = Sales/Average operating assets
Turnover = $4,011,000/$1,910,000
Turnover = 2.10
ROI = Margin x Turnover
ROI = 18% x 2.10
ROI = 37.80%
3. Net operating income $721,900
Minimum required return (15% x $1,910,000) $286,500
Residual income $435,400
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