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 calulate the following:

1. Average Operating Assets (rounded to the nearest whole dollar)

2. Operating Income (rounded to the nearest whole dollar)

3. Sales (rounded to the nearest whole dollar)

4. Margin (rounded to 2 decimal places)

5. Turnover (rounded to 2 decimal places)

6. Return On Investment (rounded to 2 decimal places)

7. Residual Income (rounded to the nearest whole dollar)