5 Problem 11-22 Return on Investment and Residual Income [LO3, LO4] Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Liabilities and shareholders' equity Accounts payable Long-term debt Shareholders' equity Total liabilities and shareholders' equity BRIDGER INC. Income Statement Sales Operating expenses Operating income $4,500,000 4,005,000 495,000 Interest and taxes: Interest expense Tax expense Net income $107,000 162,000 269,000 $ 226,000 Ending Balance Beginning Balance $ 158,000 $ 153,000 430,000 290,000 440,000 520,000 872,000 887,000 530,000 500,000 350,000 350,000 $2,780,000 $2,700,000 $ 340,000 $ 380,000 1,100,000 1,100,000 1,340,000 1,220,000 $2,780,000 $2,700,000 The company paid dividends of $125,000 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company.