Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Inc., for last year follow. Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance 127,000 $ 137,000 334,000 484,000 565,000 475,000 824,000 794,000 402,000 434,000 251,000 250,000 $2,574,000 $ $ 347,000 1,028,000 1,199,000 $2,574,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity $ 2,503,000 388,000 1,028,000 1,087,000 $ 2,503,000 Sales Joel de Paris, Inc. Income Statement Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 4,675,000 3,833,500 841,500 $110,000 204,000 314,000 527,500 B The company paid dividends of $415,500 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%