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Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending Balance Beginning Balance Assets Cash $ 168,000 $ 163,000
Financial data for Bridger Inc. for last year are as follows:
BRIDGER INC. Balance Sheet | ||||||
Ending Balance | Beginning Balance | |||||
Assets | ||||||
Cash | $ | 168,000 | $ | 163,000 | ||
Accounts receivable | 430,000 | 290,000 | ||||
Inventory | 450,000 | 530,000 | ||||
Plant and equipment, net | 702,000 | 747,000 | ||||
Investment in Brier Company | 630,000 | 600,000 | ||||
Land (undeveloped) | 450,000 | 450,000 | ||||
Total assets | $ | 2,830,000 | $ | 2,780,000 | ||
Liabilities and Shareholders Equity | ||||||
Accounts payable | $ | 410,000 | $ | 450,000 | ||
Long-term debt | 1,100,000 | 1,100,000 | ||||
Shareholders equity | 1,320,000 | 1,230,000 | ||||
Total liabilities and shareholders equity | $ | 2,830,000 | $ | 2,780,000 | ||
BRIDGER INC. Income Statement | ||||||
Sales | $ | 4,350,000 | ||||
Operating expenses | 3,784,500 | |||||
Operating income | 565,500 | |||||
Interest and taxes: | ||||||
Interest expense | $ | 138,000 | ||||
Tax expense | 218,000 | 356,000 | ||||
Net income | $ | 209,500 | ||||
The company paid dividends of $104,500 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 companys margin, turnover, and ROI for last year. (Round your intermediate calculations and final answers to 1 decimal place.)
2. The board of directors of Bridger Inc. has set a minimum required return of 18%. What was the companys residual income last year?
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