Question
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 346,000 $
Financial data for Beaker Company for last year appear below:
Beaker Company | |||||||
Statements of Financial Position | |||||||
Beginning Balance | Ending Balance | ||||||
Assets: | |||||||
Cash | $ | 346,000 | $ | 324,792 | |||
Accounts receivable | 202,000 | 159,000 | |||||
Inventory | 298,000 | 299,000 | |||||
Plant and equipment (net) | 463,000 | 455,000 | |||||
Investment in Cedar Company | 318,000 | 293,000 | |||||
Land (undeveloped) | 237,000 | 237,000 | |||||
Total assets | $ | 1,864,000 | $ | 1,767,792 | |||
Liabilities and owners' equity: | |||||||
Accounts payable | $ | 249,000 | $ | 228,000 | |||
Long-term debt | 855,000 | 855,000 | |||||
Owners' equity | 760,000 | 684,792 | |||||
Total liabilities and owners' equity | $ | 1,864,000 | $ | 1,767,792 | |||
Beaker Company | |||||||
Income Statement | |||||||
Sales | $ | 1,790,000 | |||||
Less operating expenses | 1,440,950 | ||||||
Net operating income | 349,050 | ||||||
Less interest and taxes: | |||||||
Interest expense | $ | 98,600 | |||||
Tax expense | 125,658 | 224,258 | |||||
Net income | $ | 124,792 | |||||
The company paid dividends of $200,000 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 25%.
Required:
Please calculate the following:
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 dollar with commas) | $ |
Margin (rounded to the 2 decimal places) | % |
Turnover (rounded to 2 decimal places) | |
Return On Investment (rounded to 2 decimal places) | % |
Residual Income (rounded to the nearest whole dollar, with commas) | $ |
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