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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 $ 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 Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net income $ 1,790,000 1,440,950 349,050 $ 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 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 % Complete this question by entering your answers in the tabs below. Required A Required B The Board of Directors of Beaker Company has set a minimum required return of 25%. What was the company's residual income last year? (Round your intermediate calculations and final answer to 2 decimal places.) Residual income
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