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Financial data for Joel De Paris, Incorporated, for the last year follow: Joel De Paris, Incorporated Balance Sheet Beginning Balance Ending Balance Assets Cash $131,000

Financial data for Joel De Paris, Incorporated, for the last year follow:

Joel De Paris, Incorporated

Balance Sheet Beginning Balance Ending Balance

Assets

Cash

$131,000 $129,000

Accounts Receivable

342,000 477,000
Inventory 572,000 488,000

Plant and equipment, net

795,000 786,000

Investment in Buisson, SA

405,000 429,000

Land (undeveloped)

254,000 251,000

Total assets

$2,499,000 $2,560,000
Liabilities and Stockholders Equity

Accounts payable

$388,000 $332,000

Long term debt

956,000 956,000

Stockholders equity

1,155,000 1,272,000

Total liabilities and stockholders equity

$2,499,000 $2,560,000

Joel De Paris, Incorporated

Income Statement

Sales

$5,208,000

Operating Expenses

4, 374,720

Net operating Income

833,280

Interest and taxes:

Interest expense

$113,000

Tax expense

200,000 total: 313,000

Net income

$520,280

The company paid dividends of $403,280 last year. The Investment in Bussion, SA on the balance sheet represents an investment in the stock of another company. The companys minimum required rate of return 15%.

Required:

Compute the companys return on investment (ROI) for the last year.

What was the companys residual income last year?

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