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Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment
Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Liabilities and shareholders' equity Accounts payable Long-term debt Shareholders' equity Total liabilities and shareholders' equity Ending Balance Beginning Balance $ 158,000 $ 153,000 430,000 290,000 440,000 520,000 872,000 887,000 530,000 500,000 350,000 350,000 $2,780,000 $2,700,000 $ 380,000 1,100,000 1,220,000 $2,700,000 $ 340,000 1,100,000 1,340,000 $2,780,000 BRIDGER INC. Income Statement $4,500,000 4,005,000 495,000 $107,000 162,000 269,000 Sales Operating expenses Operating incone Interest and taxes: Interest expense Tax expense Net income $ 226,000 The company paid dividends of $125,000 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company. Required: Net income 226,000 The company paid dividends of $125,000 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company. Required: 1. Compute the company's margin, turnover, and ROI for last year. (Round your intermediate calculations and final answers to 2 decimal places.) Margin Turnover ROI % % 2. The board of directors of Bridger Inc. has set a minimum required return of 16%. What was the company's residual income last year? Residual income
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