QUESTION 3 (9 marks) Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets $ 50,000 20,000 30,000 120,000 80,000 170,000 $470,000 $70,000 25,000 35,000 110,000 100,000 170,000 $510,000 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $ 70,000 250,000 150,000 $ 90,000 250,000 170,000 $470,000 $510,000 Beaker Company Income Statement Sales $414,000 Less operating expenses 351,900 Net operating income 62,100 Less interest and taxes: Interest expense $30,000 Tax expense 10,000 40,000 Operating Income $22.100 The company paid dividends of $2,100 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Required: a) Calculate the average operating assets for the year. (Show your calculations) b) Compute the company's margin, turnover, and return on investment for last year. c) The Board of Directors of Beaker Company have set a minimum required return of 18%. What was the company's residual income last year