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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 $ 5 8
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 underdeveloped
Total assets $ $
Liabilities and owners' equity:
Accounts payable $ $
Longterm debt
Owners' equity
Total liabilities and owners' equity $ $
Beaker Company
Income Statement
Sales $
Less operating expenses
Net operating income
Less interest and taxes:
Interest expense $
Tax expense
Operating Income $
The company paid dividends of $ 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 have set a minimum required return of What was the company's residual income last year?
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