A. compute the company's margin, turnover, and return on investment for last year.

B. the board of directors has a set minimum required return of 17.50%. what was the company's residual income last year?

H B D E F G 1 Financial data for Indigo Perfume Company for last year appear below: 2 3 4 Indigo Perfume Company 5 Balance Sheet 6 Beginning Ending 7 Assets Balance Balance 8 Cash $ 90,000 $ 93,000 9 Accounts receivable 148,000 146,000 10 Inventory 62,000 61,000 11 Plant and equipment (net) 190,460 189,000 12 Investment in Balsam Company 50,000 60,000 13 Land (undeveloped) 100.000 100,000 14 Total assets 640460 S 649.000 15 16 Liabilities and owners' equity: 17 Accounts payable $ 70,460 $ 71,205 18 Long-term debt 500.000 484.000 19 Owners equity 70.000 93.795 20 Total liabilities and owners' equity 640.460 $ 649.000 21 22 Indigo Perfume Company 23 Income Statement 24 25 Sales $1,307,579 26 Cost of Goods Sold 906.000 27 Gross Profit 401,579 28 Less operating expenses 312.664 29 Net operating income 88.915 30 Less interest and taxes: 31 Interest expense 30,000 32 Tax expense 15.120 45,120 33 Net income S 43.795 34 35 36 The company paid dividends of $20,000 last year 37 The "Investment in Balsam Company" on the statement of financial position represents an investment in the stock of another company 38 37 The "Investment in Balsam Company on the statement of financial position represents an investmen 38 39 Required: 30 11 a. Compute the company's margin, turnover, and return on investment for last year 12 13 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 b. The Board of Directors of Indigo Perfume has set a minimum required return of 63 What was the company's residual income last year? 64 65 66 67 68 17.50% 69 70 71 72 73 74 75 78 ROI Residual