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) | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started