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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
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 $ 295,000 178,000 275,000 480,000 306,000 273,000 $1,807,000 $ 336,524 180,000 222,000 441,000 322,000 273,000 $1,774,524 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $ 224,000 824,000 759,000 $1,807,000 $ 197,000 824,000 753,524 $1,774,524 Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes: Interest expense $ 99, 100 Tax expense 151,776 Net income $ 2,480,000 2,033,600 446,400 250,876 195,524 $ The company paid dividends of $201,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Required: a. Compute the company's margin, turnover, and return on investment for last year. b. The Board of Directors of Beaker Company has set a minimum required return of 34%. What was the company's residual income last year? Complete this question by entering your answers in the tabs below. Required A Required B Compute the company's margin, turnover, and return on investment for last year. (Round your "Percentage" answers to 2 decimal places.) % Margin Turnover Return on investment % Required A Required B The Board of Directors of Beaker Company has set a minimum required return of 34%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places.) Residual income
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