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Financial data for Bridger Inc. for last year are as follows: Assets Cash Accounts receivable Inventory BRIDGER INC. Balance Sheet Ending Balance Plant and
Financial data for Bridger Inc. for last year are as follows: Assets Cash Accounts receivable Inventory BRIDGER INC. Balance Sheet Ending Balance Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Beginning Balance $ 150,000 $ 145,000 500,000 360,000 510,000 590,000 840,000 865,000 450,000 420,000 270,000 270,000 $2,720,000 $2,650,000 Liabilities and shareholders' equity Accounts payable Long-term debt Shareholders' equity. Total liabilities and shareholders' equity. $ 340,000 $380,000 1,000,000 1,000,000 1,380,000 1,270,000 $2,720,000 $2,650,000 BRIDGER INC. Income Statement $2,090,000 Sales Operating expenses Operating income Interest and taxes: Interest $90,000 expense Tax expense 85,000 Net income 1,776,500 313,500 175,000 $ 138,500 The company paid dividends of $85,000 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. (Do not round intermediate calculations. Round your answer to 2 decimal place.) Margin Turnover ROI 15.00% % 2. The board of directors of Bridger Inc. has set a minimum required return of 14%. What was the company's residual income last year? Residual income
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