Question
Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 256,000 $ 231,240 Accounts receivable 144,000 192,000 Inventory 310,000 240,000 Plant and
Beaker Company
Statements of Financial Position
Beginning Balance
Ending Balance
Assets:
Cash
$
256,000
$
231,240
Accounts receivable
144,000
192,000
Inventory
310,000
240,000
Plant and equipment (net)
492,000
445,000
Investment in Cedar Company
301,000
286,000
Land (undeveloped)
280,000
280,000
Total assets
$
1,783,000
$
1,674,240
Liabilities and owners' equity:
Accounts payable
$
214,000
$
238,000
Long-term debt
810,000
810,000
Owners' equity
759,000
626,240
Total liabilities and owners' equity
$
1,783,000
$
1,674,240
Beaker Company
Income Statement
Sales
$
2,060,000
Less operating expenses
1,854,000
Net operating income
206,000
Less interest and taxes:
Interest expense
$
96,900
Tax expense
63,860
160,760
Net income
$
45,240
The company paid dividends of$178,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company.
Additionally; The Board of Directors of Beaker Company has set a minimum required return of 15%.
Please calculate thefollowing:
Average Operating Assets(rounded to the nearest whole dollar, with commas)
$
Operating Income(rounded to the nearest whole dollar,with commas)
$
Sales(rounded to the nearest whole dollarwith commas)
$
Margin(rounded to the2 decimal places)
%
Turnover(rounded to2 decimal places)
Return On Investment(rounded to2 decimal places)
%
Residual Income(rounded to the nearest whole dollar,with commas)
$
14 points
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