7 8 01:49:20 Financial data for Guyer Corporation, for last year follow: Guyer Corporation Balance Sheet Beginning Ending Balance Balance Assets Cash $ 140,000 $ 120,000 Accounts receivable 450,000 530,000 Inventory 320,000 380,000 Plant and equipment, net 680,000 620,000 Investment in ABC, Inc. 250,000 280,000 Land (undeveloped) 180,000 170,000 Total assets $2,020,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable $360,000 $ 310,000 Long-term debt 1,500,000 1,500,000 Stockholders' equity 160,000 290,000 Total liabilities and stockholders' equity $2,020,000 $2,100,000 7 310,000 Guyer Corporation Income Statement Sales Operating expenses Net operating income $4,050,000 3,630,000 420,000 Total liabilities and stockholders' equity $2,020,000 $2,100,000 7 8 01:48:57 $4,050,000 3,630,000 Guyer Corporation Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest $150,000 expense Tax expense 110,000 Net income 420,000 260,000 $ 160,000 The company paid dividends of $15,000 last year. The "Investment in ABC, Inc." on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 6%. What was the company's residual income last year? Multiple Choice