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Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance AssetS Cash Accounts receivable Inventory
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance AssetS Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets $ 356, 000 143,000 284, 000 467,000 238,000 278,000 $1,766,000 $ 318,575 179,000 259,000 445,000 326,000 278,000 $1,805,575 Liabilities and owners' equity: Accounts payable Long-term debt Owners'equity $ 227,000 813,000 726,000 $1,766,000 $ 179,000 813,000 813,575 $1,805,575 Total liabilities and owners' equity Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes: $2,350,000 1,856,500 493,500 Interest expense Tax expense $101,200 172,725 273,925 $ 219,575 Net income The company paid dividends of $132,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company Required: a. Compute the company's margin, turnover, and return on investment for last year b, The Board of Directors of Beaker Company has set a minimum required return of 38%. what was the company's residual income last year
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