Cash Accounts receivable Inventory Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Liabilities and shareholders' equity Accounts payable. Long-tere debt Shareholders' equity Total liabilities and shareholders' equity BRIDGER INC. Income Statement Sales Operating expenses Operating income Interest and taxes: Interest expense Tax expense Net income Margin Tumover ROI $ 90,000 85,000 15.00 % 1.05 15.75% $2,090,000 1,776,500 313,500 175,000 $ 138,500 4 $ 150,000 $ 145,000 500,000 360,000 590,000 865,000 420,000 270,000 $2,650,000 510,000 840,000 The company paid dividends of $85,000 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company 450,000 270,000 $2,720,000 Required: 1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round your answer to 2 decimal place.) $ 340,000 1,000,000 1,380,000 $ 380,000 1,000,000 1,270,000 $2,720,000 $2,650,000 2. The board of directors of Bridger Inc. has set a minimum required return of 14%. What was the company's residual income last year?
Cash Accounts receivable Inventory Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Liabilities and shareholders' equity Accounts payable. Long-tere debt Shareholders' equity Total liabilities and shareholders' equity BRIDGER INC. Income Statement Sales Operating expenses Operating income Interest and taxes: Interest expense Tax expense Net income Margin Tumover ROI $ 90,000 85,000 15.00 % 1.05 15.75% $2,090,000 1,776,500 313,500 175,000 $ 138,500 4 $ 150,000 $ 145,000 500,000 360,000 590,000 865,000 420,000 270,000 $2,650,000 510,000 840,000 The company paid dividends of $85,000 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company 450,000 270,000 $2,720,000 Required: 1. Compute the company's margin, turnover, and ROI for last year. (Do not round intermediate calculations. Round your answer to 2 decimal place.) $ 340,000 1,000,000 1,380,000 $ 380,000 1,000,000 1,270,000 $2,720,000 $2,650,000 2. The board of directors of Bridger Inc. has set a minimum required return of 14%. What was the company's residual income last year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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