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Financial data for Bridger, Inc., for last year are as follows: Please Explain How you got the answers not just the answers Bridger, Inc. Balance
Financial data for Bridger, Inc., for last year are as follows: |
Please Explain How you got the answers not just the answers
Bridger, Inc. Balance Sheet | ||||
Beginning Balance | Ending Balance | |||
Assets | ||||
Cash | $ | 137,000 | $ | 127,000 |
Accounts receivable | 343,000 | 476,000 | ||
Inventory | 568,000 | 490,000 | ||
Plant and equipment, net | 822,000 | 817,000 | ||
Investment in Brier Company | 398,000 | 434,000 | ||
Land (undeveloped) | 252,000 | 248,000 | ||
Total assets | $ | 2,520,000 | $ | 2,592,000 |
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ | 386,000 | $ | 350,000 |
Long-term debt | 968,000 | 968,000 | ||
Stockholders' equity | 1,166,000 | 1,274,000 | ||
Total liabilities and stockholders' equity | $ | 2,520,000 | $ | 2,592,000 |
Bridger, Inc. Income Statement | |||
Sales | $ | 4,158,000 | |
Operating expenses | 3,617,460 | ||
Net operating income | 540,540 | ||
Interest and taxes: | |||
Interest expense | $ 120,000 | ||
Tax expense | 206,000 | 326,000 | |
Net income | $ | 214,540 | |
The company paid dividends of $106,540 last year. The Investment in Brier Company on the balance sheet represents an investment in the stock of another company. |
Required: | |
1. | Compute the companys margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Omit the "%" sign in your response.) |
Margin | % |
Turnover | |
ROI | % |
2. | The board of directors of Bridger, Inc., has set a minimum required return of 15%. What was the companys residual income last year? (Omit the "$" sign in your response.) |
Residual income | $ |
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