Business
Business, 09.12.2019 18:31, ab847150

Financial data for beaker company for last year appear below:
beaker company
statements of financial position
beginning balance ending balance
assets:
cash $ 263,000 $ 31,164
accounts receivable 126,000 215,000
inventory 255,000 266,000
plant and equipment (net) 466,000 473,000
investment in cedar company 221,000 293,000
land (undeveloped) 497,000 497,000
total assets $ 1,828,000 $ 1,775,164
liabilities and owners' equity:
accounts payable $ 164,000 $ 228,000
long-term debt 884,000 884,000
owners' equity 780,000 663,164
total liabilities and owners' equity $ 1,828,000 $ 1,775,164
beaker company
income statement
sales $ 2,040,000
less operating expenses 1,795,200
net operating income 244,800
less interest and taxes:
interest expense $ 100,300
tax expense 78,336 178,636
net income $ 66,164
the company paid dividends of $183,000 last year. the "investment in cedar company" on the statement of financial position represents an investment in the stock of another company. additionally; the board of directors of beaker company has set a minimum required return of 20%.
required:
calculate the following:
i. compute the company's margin, turnover, and return on investment for last year.
ii. what was the company's residual income last year?

answer
Answers: 2

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Financial data for beaker company for last year appear below:
beaker company
statemen...

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