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Financial data for Bridger, Inc., for last year are as follows: Bridger, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 130,000 $ 133,000
Financial data for Bridger, Inc., for last year are as follows: |
Bridger, Inc. Balance Sheet | ||||
Beginning Balance | Ending Balance | |||
Assets | ||||
Cash | $ | 130,000 | $ | 133,000 |
Accounts receivable | 349,000 | 483,000 | ||
Inventory | 575,000 | 490,000 | ||
Plant and equipment, net | 836,000 | 824,000 | ||
Investment in Brier Company | 392,000 | 428,000 | ||
Land (undeveloped) | 245,000 | 247,000 | ||
Total assets | $ | 2,527,000 | $ | 2,605,000 |
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ | 378,000 | $ | 333,000 |
Long-term debt | 1,044,000 | 1,044,000 | ||
Stockholders' equity | 1,105,000 | 1,228,000 | ||
Total liabilities and stockholders' equity | $ | 2,527,000 | $ | 2,605,000 |
Bridger, Inc. Income Statement | |||
Sales | $ | 5,348,000 | |
Operating expenses | 4,599,280 | ||
Net operating income | 748,720 | ||
Interest and taxes: | |||
Interest expense | $ 120,000 | ||
Tax expense | 193,000 | 313,000 | |
Net income | $ | 435,720 | |
The company paid dividends of $312,720 last year. The Investment in Brier Company on the balance sheet represents an investment in the stock of another company. |
Required: | |
1. | Compute the companys margin, turnover, and return on investment (ROI) for last year. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Omit the "%" sign in your response.) |
Margin | % |
Turnover | |
ROI | % |
2. | The board of directors of Bridger, Inc., has set a minimum required return of 15%. What was the companys residual income last year? (Omit the "$" sign in your response.) |
Residual income | $ |
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