Problem 11-22 Return on Investment and Residual Income [LO3, LO4] Financial data for Bridger Inc. for last year are as follows: Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Liabilities and shareholders' equity Accounts payable Long-term debt Shareholders' equity Total liabilities and shareholders' equity Sales Operating expenses Operating income Interest and taxes: Interest expense Tax expense Net income BRIDGER INC. Income Statement Margin Turnover ROI BRIDGER INC. Balance Sheet % $138,000 218,000 % $4,350,000 3, 500 565,500 Required: 1. Compute the company's margin, turnover, decimal places.) 356,000 $ 209,500 $ Ending Balance 168,000 430,000 450,000 702,000 630,000 450,000 $2,830,000 Beginning Balance The company paid dividends of $104,500 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company. $ 163,000 290,000 530,000 747,000 600,000 450,000 $2,780,000 $ 410,000 1,100,000 1,320,000 $ 450,000 1,100,000 1,230,000 $2,830,000 $2,780,000 ROI for last year. (Round your intermediate culation and final answers to 2 2. The board of directors of Bridger Inc. has set a minimum required return of 18%. What was the company's residual income last year?
Problem 11-22 Return on Investment and Residual Income [LO3, LO4] Financial data for Bridger Inc. for last year are as follows: Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets Liabilities and shareholders' equity Accounts payable Long-term debt Shareholders' equity Total liabilities and shareholders' equity Sales Operating expenses Operating income Interest and taxes: Interest expense Tax expense Net income BRIDGER INC. Income Statement Margin Turnover ROI BRIDGER INC. Balance Sheet % $138,000 218,000 % $4,350,000 3, 500 565,500 Required: 1. Compute the company's margin, turnover, decimal places.) 356,000 $ 209,500 $ Ending Balance 168,000 430,000 450,000 702,000 630,000 450,000 $2,830,000 Beginning Balance The company paid dividends of $104,500 last year. The "Investment in Brier Company" on the balance sheet represents an investment in the common shares of another company. $ 163,000 290,000 530,000 747,000 600,000 450,000 $2,780,000 $ 410,000 1,100,000 1,320,000 $ 450,000 1,100,000 1,230,000 $2,830,000 $2,780,000 ROI for last year. (Round your intermediate culation and final answers to 2 2. The board of directors of Bridger Inc. has set a minimum required return of 18%. What was the company's residual income last year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 11-22 Return on Investment and Residual Income [LO3, LO4]
Financial data for Bridger Inc. for last year are as follows:
Assets
Cash.
Accounts receivable
Inventory.
Plant and equipment, net
Investment in Brier Company
Land (undeveloped)
Total assets
Liabilities and shareholders' equity
Accounts payable
Long-term debt
Shareholders' equity
Total liabilities and shareholders' equity
Sales
Operating expenses
Operating income.
Interest and taxes:
Interest expense
Tax expense
Net income
BRIDGER INC.
Income Statement
Margin
Turnover
ROI
BRIDGER INC.
Balance Sheet
Residual income
%
$138,000
218,000
%
$4,350,000
3,784,500
565,500
356,000
$ 209,500
Ending
Balance
Beginning
Balance
$ 168,000 $ 163,000
430,000
290,000
450,000
530,000
702,000
630,000
450,000
$2,830,000
The company paid dividends of $104,500 last year. The "Investment in Brier Company" on the balance sheet represents an investment
in the common shares of another company.
Required:
1. Compute the company's margin, turnover, and ROI for last year. (Round your intermediate calculations and final answers to 2
decimal places.)
747,000
600,000
450,000
$2,780,000
$ 410,000 $ 450,000
1,100,000 1,100,000
1,320,000 1,230,000
$2,830,000 $2,780,000
2. The board of directors of Bridger Inc. has set a minimum required return of 18%. What was the company's residual income last year?
I](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ecd48e7-e742-4286-8acd-cf6b6a94b055%2F21c4b742-7770-4ef8-93a4-37d60c940760%2Fu68xpa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 11-22 Return on Investment and Residual Income [LO3, LO4]
Financial data for Bridger Inc. for last year are as follows:
Assets
Cash.
Accounts receivable
Inventory.
Plant and equipment, net
Investment in Brier Company
Land (undeveloped)
Total assets
Liabilities and shareholders' equity
Accounts payable
Long-term debt
Shareholders' equity
Total liabilities and shareholders' equity
Sales
Operating expenses
Operating income.
Interest and taxes:
Interest expense
Tax expense
Net income
BRIDGER INC.
Income Statement
Margin
Turnover
ROI
BRIDGER INC.
Balance Sheet
Residual income
%
$138,000
218,000
%
$4,350,000
3,784,500
565,500
356,000
$ 209,500
Ending
Balance
Beginning
Balance
$ 168,000 $ 163,000
430,000
290,000
450,000
530,000
702,000
630,000
450,000
$2,830,000
The company paid dividends of $104,500 last year. The "Investment in Brier Company" on the balance sheet represents an investment
in the common shares of another company.
Required:
1. Compute the company's margin, turnover, and ROI for last year. (Round your intermediate calculations and final answers to 2
decimal places.)
747,000
600,000
450,000
$2,780,000
$ 410,000 $ 450,000
1,100,000 1,100,000
1,320,000 1,230,000
$2,830,000 $2,780,000
2. The board of directors of Bridger Inc. has set a minimum required return of 18%. What was the company's residual income last year?
I
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