| Financial data for Bridger, Inc., for last year are as follows: |
| Bridger, Inc. Balance Sheet |
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| Beginning Balance |
Ending Balance |
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| Assets | ||||
| Cash | $ | 132,000 | $ | 128,000 |
| Accounts receivable | 347,000 | 485,000 | ||
| Inventory | 576,000 | 487,000 | ||
| Plant and equipment, net | 855,000 | 850,000 | ||
| Investment in Brier Company | 399,000 | 426,000 | ||
| Land (undeveloped) | 247,000 | 251,000 | ||
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| Total assets | $ | 2,556,000 | $ | 2,627,000 |
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| Liabilities and Stockholders’ Equity | ||||
| Accounts payable | $ | 385,000 | $ | 336,000 |
| Long term debt | 1,019,000 | 1,019,000 | ||
| Stockholders’ equity | 1,152,000 | 1,272,000 | ||
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| Total liabilities and stockholders’ equity | $ | 2,556,000 | $ | 2,627,000 |
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| Bridger, Inc. Income Statement |
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| Sales | $ | 5,018,000 | |
| Operating expenses | 4,164,940 | ||
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| Net operating income | 853,060 | ||
| Interest and taxes: | |||
| Interest expense | $ 119,000 | ||
| Tax expense | 208,000 | 327,000 | |
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| Net income | $ | 526,060 | |
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| The company paid dividends of $406,060 last year. The Af?cAc‚¬A??oInvestment in Brier CompanyAf?cAc‚¬ on the balance sheet represents an investment in the stock of another company. |
| Required: | |
| 1. |
Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round your intermediate calculations and final answers to 1 decimal place.) |
| Margin | % |
| Turnover | |
| ROI | % |
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| 2. | The board of directors of Bridger, Inc., has set a minimum required return of 19%. What was the company’s residual income last year? |
| Residual income | $ |
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