Problem 12-5 Computing ROl and RI (LO2 - CC4, 6) Financial data for Joel de Paris Inc. for last year follow: JOEL DE PARIS INC Balance Sheet Ending Balance Beginning Balance Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A Land (undeveloped) $450,000 1,350,000 675,000 1,575,000 900,000 1,350,000 448,000 324,000 900,000 1,800,000 487,000 296,000 Total assets $5,283,000 $5,272,000 Liabilities and Shareholders' Equity Accounts payable Long-term debt Shareholders' equity $860,000 $ 971,000 3,884,000 417,000 3,440,000 983,000 Total liabilities and shareholders' equity $5,283,000 $5,272,000 JOEL DE PARIS INC Income Statement Sales Less: Operating expenses $8,100,000 6,480,000 1,620,000 Net operating income Less: Interest and taxes Interest expense Tax expense $595,000 435,000 1,030,000 Net income $ 590,000