File Home Insert Draw Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enal UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps Update now F18 468000 H B D E G 1 Financial data for Pink Perfume Company for last year appear below 2 3 4 Pink Perfume Company 5 Balance Sheet 6 Beginning Ending 7 Assets Balance Balance 8 Cash $ 90,000 $ 83,000 9 Accounts receivable 148,000 145,000 10 Inventory 62,000 61,000 11 Plant and equipment (net) 190,460 189,000 12 Investment in Balsam Company 50,000 55,000 13 Land (undeveloped) 100.000 100.000 14 Total assets $ 640.460 $ 633.000 15 16 Liabilities and owners equity 17 Accounts payable $ 70 460 $ 74,458 16 Long-term debt 500,000 468,000 19 Owners' equity 70,000 90 542 20 Total liabilities and owners' equity s 640.460 $ 633.000 21 22 Pink Perfume Company 23 Income Statement 24 25 Sales $1,307.421 26 Cost of Goods Sold 906.000 27 Gross Profit 401.421 28 Less operating expenses 315.131 29 Net operating income 86.290 30 Less interest and taxes: 31 Interest expense 35,000 32 Tax expense 10.748 45.748 33 Net Income $ 40.542 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 39 Required: ROI Residual Transfer Pricing Type here to search - File Home Insert Draw Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View En UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some apps. Update now F18 for 468000 A B D E G H 31 Interest expense 35,000 32 Tax expense 10.748 45.748 33 Net income 40.542 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 39 Required: 40 41 a Compute the company's margin, turnover, and return on investment for last year, 42 43 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 Pink Perfume has set a minimum required return of 18.50% 63 What was the company's residual income last year? 64 65 66 67 68