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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
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 Liabilities and owners' equity: Accounts payable Long-term debt Owners equity Total Liabilities and owners' equity $ 345,000 $324,792 202,000 159,000 298,000 299,000 463,000 455,000 318,000 293,000 237,000 237,000 $ 1,864,000 $1,767,792 $ 249,000 855,000 $228,000 855,000 760,000 $ 1,864,000 684,792 $1,767,792 Sales Beaker Company Income Statement $ 1,790,000 1,440,950 Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net incone 349,050 $ 98,600 125,658 224,258 $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. 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 25%. What was the company's residual income last
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