Problem 9-18A Return on Investment (ROI) and Residual Income [LO1, LO2]

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

Bridger, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	136,000	$	130,000
Accounts receivable		339,000		488,000
Inventory		563,000		479,000
Plant and equipment, net		892,000		873,000
Investment in Brier Company		395,000		435,000
Land (undeveloped)		251,000		246,000
Total assets	$	2,576,000	$	2,651,000
Liabilities and Stockholders' Equity
Accounts payable	$	377,000	$	347,000
Long-term debt		987,000		987,000
Stockholders' equity		1,212,000		1,317,000
Total liabilities and stockholders' equity	$	2,576,000	$	2,651,000

Bridger, Inc. Income Statement
Sales		$	4,290,000
Operating expenses			3,603,600
Net operating income			686,400
Interest and taxes:
Interest expense	$ 128,000
Tax expense	200,000		328,000
Net income		$	358,400

The company paid dividends of $253,400 last year. The