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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 $ 331,000 169,000 263,000 451,000 266,000 365,000 $1,845,000 $ 505, 256 185,000 228,000 388,000 288,000 365,000 $1,959, 256 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $ 190,000 868,000 787,000 $1,845,000 $ 189,000 868,000 902, 256 $1,959, 256 Beaker Company Income Statement Sales Less ating expenses Net operating income Less interest and taxes: Interest expense $100,400 Tax expense 190,944 Net income $2,080,000 1,518,400 561,600 291,344 $ 270, 256 The company paid dividends of $155.000 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 40%. What was the company's residual income last year? Required A Required B Compute the company's margin, turnover, and return on investment for last year. (Round your "Percentage" answers to 2 decimal places.) 27.00% Margin Turnover Return on investment % Required A Required B The Board of Directors of Beaker Company has set a minimum required return of 40%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.) Residual income
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