Problem 11-18 Return on Investment (ROI) and Residual Income [LO1, LO2]

Please show details on how you arrived at your answers as this is very helpful. Thank you!

Financial data for Bridger, Inc., for last year are as follows:

Bridger, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	138,000	$	130,000
Accounts receivable		341,000		470,000
Inventory		572,000		474,000
Plant and equipment, net		869,000		886,000
Investment in Brier Company		403,000		429,000
Land (undeveloped)		246,000		247,000
Total assets	$	2,569,000	$	2,636,000
Liabilities and Stockholders' Equity
Accounts payable	$	370,000	$	337,000
Long-term debt		1,034,000		1,034,000
Stockholders' equity		1,165,000		1,265,000
Total liabilities and stockholders' equity	$	2,569,000	$	2,636,000

Bridger, Inc. Income Statement
Sales		$	5,044,000
Operating expenses			4,186,520
Net operating income			857,480
Interest and taxes:
Interest expense	$ 127,000
Tax expense	195,000		322,000
Net income		$	535,480

The company paid dividends of $435,480 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 20%. What was the companys residual income last year? (Omit the "$" sign in your response.)

Residual income

$