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Financial data for Beaker Company for last year appear below: Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped)
Financial data for Beaker Company for last year appear below: Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets Beaker Company Statements of Financial Position Beginning Balance $ 336,000 139,000 236,000 452,000 269,000 377,000 $ 1,809,000 Ending Balance $ 299,888 149,000 254,000 479,000 267,000 377,000 $ 1,825,888 Liabilities and owners' equity: Accounts payable Long-term debt Owners equity Total liabilities and owners' equity $ 203,000 834,000 772,000 $1,809,000 $ 185,000 834,000 806,888 $ 1,825,888 Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes: Interest expense $ 104,900 Tax expense 177,612 Net income $ 2,280,000 1,812,600 467,400 282,512 184,888 The company paid dividends of $150,000 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 35%. What was the company's residual income last year? Complete this question by entering your answers in the tabs below. 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.) Margin % Turnover Return on investment %
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