Question

Beaker Company Statements of Financial Position Beginning Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets $ 277,600 179,000 257,000 476.000 255.009 335,889 $1.779.000 $ 136,386 205,000 270,000 440,000 288.800 335,000 51.674.386 Liabilities and owners' equity Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $ 203, 862.009 714,000 $1,779,800 $ 152, 862.000 660, 386 51.674,386 Beaker Company Income Statement Sales Less operating expenses CPH Net operating income Less interest and taxes: Interest expense $ 105,800 Tax expense 141,414 Net income $1,960,000 1,597,400 362,689 247,214 115, 386 $ The company paid dividends of $169,000 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 30%. What was the company's residual income last year? Complete this question by entering your answers in the tabs below. Required A Required B Compute the company's margin, turnover, and return on investment for last year. (Round your "Percentage answers to 2 decimal places.) Margin Turnover Return on investment