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Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Incorporated, for last year follow. Joel
Problem 11-17 (Algo) Return on Investment (ROI) and Residual Income [LO11-1, LO11-2] Financial data for Joel de Paris, Incorporated, for last year follow. Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Sales Joel de Paris, Incorporated Income Statement Operating expenses Net operating income Interest expense Interest and taxes: Tax expense Net income Beginning Balance Ending Balance $ 139,000 $139,000 349,000 481,000 565,000 482,000 807,000 798,000 410,000 425,000 245,000 250,000 $ 2,515,000 $2,575,000 $ 373,000 1,015,000 1,127,000 $ 2,515,000 $330,000 1,015,000 1,230,000 $2,575,000 $ 4,136,000 3,515,600 620,400 $122,000 196,000 318,000 $ 302,400 The company paid dividends of $199,400 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%.
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