Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Assets: Cash Accounts receivable. Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners equity Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net income $ 102,000 139,080 $ 2,440,000 2,074,000 366,000 241,080 $ 124,920 Beginning Balance Ending Balance $ 273,000 191,000 313,000 438,000 255,000 305,000 $ 1,775,000 $ 192,000 839,000 744,000 $.1,775,000 $ 336,920 200,000 251,000 398,000 277,000 305,000 $1,767,920 $ 171,000 839,000 757,920 $1,767,920 The company paid dividends of $111,000 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 26%. What was the company's residual income last year?

Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Assets: Cash Accounts receivable. Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners equity Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes: Interest expense Tax expense Net income $ 102,000 139,080 $ 2,440,000 2,074,000 366,000 241,080 $ 124,920 Beginning Balance Ending Balance $ 273,000 191,000 313,000 438,000 255,000 305,000 $ 1,775,000 $ 192,000 839,000 744,000 $.1,775,000 $ 336,920 200,000 251,000 398,000 277,000 305,000 $1,767,920 $ 171,000 839,000 757,920 $1,767,920 The company paid dividends of $111,000 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 26%. What was the company's residual income last year?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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Subject: acounting
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Subject :- Account
Subject-account
Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Inc. Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income. $116,000 204,000 $4,462,000 3,792,700 669,300 $ 320,000 349,300 Beginning Balance 133,000 $ 333,000 580,000 874,000 407,000 249,000 $ 2,576,000 Ending Balance 128,000 470,000 488,000 874,000 430,000 254,000 $ 2,644,000 $ 373,000 $ 344,000 1,017,000 1,017,000 1,186,000 1,283,000 $ 2,576,000 $ 2,644,000
Subject-Acounting
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Subject: accounting
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