2. Financial data for Beaker Company for last year appear below: The company paid dividends of $2,100 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Required: a) Compute the company's margin, turnover, and return on investment for last year. b) The Board of Directors of Beaker Company have set a minimum required return of 20%. What was the company's residual income last year?

Beaker Company Statements of Financial Position Beginning Ending Balance Balance Assets Cash 50,000 70,000 20,000 Accounts receivable 25,000 30,000 35,000 Inventory 120,000 110,000 Plant and equipment (net) 80,000 100,000 Investment in Cedar Company Land (undeveloped 170.000 170,000 $470,000 $510,000 Total assets Liabilities and owners' equity: 70.000 90,000 Accounts payable Long-term debt 250.000 250.000 150.000 170,000 Owners' equity Total liabilities $470,000 $510.000 and owners' equity