Question
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 290,000 $
Financial data for Beaker Company for last year appear below:
Beaker Company |
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Statements of Financial Position |
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| Beginning Balance | Ending Balance |
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Assets: |
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Cash | $ | 290,000 |
| $ | 451,280 |
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Accounts receivable |
| 209,000 |
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| 193,000 |
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Inventory |
| 282,000 |
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| 232,000 |
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Plant and equipment (net) |
| 430,000 |
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| 393,000 |
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Investment in Cedar Company |
| 304,000 |
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| 255,000 |
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Land (undeveloped) |
| 241,000 |
|
| 241,000 |
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Total assets | $ | 1,756,000 |
| $ | 1,765,280 |
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Liabilities and owners' equity: |
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Accounts payable | $ | 208,000 |
| $ | 175,000 |
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Long-term debt |
| 824,000 |
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| 824,000 |
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Owners' equity |
| 724,000 |
|
| 766,280 |
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Total liabilities and owners' equity | $ | 1,756,000 |
| $ | 1,765,280 |
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Beaker Company |
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Income Statement |
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Sales |
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| $ | 1,960,000 |
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Less operating expenses |
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| 1,519,000 |
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Net operating income |
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| 441,000 |
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Less interest and taxes: |
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Interest expense | $ | 103,600 |
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Tax expense |
| 141,120 |
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| 244,720 |
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Net income |
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| $ | 196,280 |
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The company paid dividends of $154,000 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 30%.
Required:
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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) |
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Return On Investment (rounded to 2 decimal places) | % |
Residual Income (rounded to the nearest whole dollar, with commas) |
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