Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial data for Bridger, Inc., for last year are as follows: Bridger, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 133,000 $ 139,000

Financial data for Bridger, Inc., for last year are as follows: Bridger, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 133,000 $ 139,000 Accounts receivable 345,000 471,000 Inventory 577,000 471,000 Plant and equipment, net 855,000 869,000 Investment in Brier Company 402,000 427,000 Land (undeveloped) 246,000 253,000 Total assets $ 2,558,000 $ 2,630,000 Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 341,000 Long-term debt 982,000 982,000 Stockholders' equity 1,201,000 1,307,000 Total liabilities and stockholders' equity $ 2,558,000 $ 2,630,000 Bridger, Inc. Income Statement Sales $ 5,404,000 Operating expenses 4,593,400 Net operating income 810,600 Interest and taxes: Interest expense $ 117,000 Tax expense 197,000 314,000 Net income $ 496,600 The company paid dividends of $390,600 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. (Round your intermediate calculations and final answers to 1 decimal place.) Margin % Turnover ROI % 2. The board of directors of Bridger, Inc., has set a minimum required return of 18%. What was the companys residual income last year? Residual income $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

7th edition

1259722635, 978-1259722639

Students also viewed these Accounting questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago