TB Problem Qu. 10-168 Financial data for Beaker...
Financial data for Beaker Company for last year appear below:
Beaker Company | ||||||||||||
Statements of Financial Position | ||||||||||||
Beginning Balance | Ending Balance | |||||||||||
Assets: | ||||||||||||
Cash | $ | 295,000 | $ | 336,524 | ||||||||
Accounts receivable | 178,000 | 180,000 | ||||||||||
Inventory | 275,000 | 222,000 | ||||||||||
Plant and equipment (net) | 480,000 | 441,000 | ||||||||||
Investment in Cedar Company | 306,000 | 322,000 | ||||||||||
Land (undeveloped) | 273,000 | 273,000 | ||||||||||
Total assets | $ | 1,807,000 | $ | 1,774,524 | ||||||||
Liabilities and owners' equity: | ||||||||||||
Accounts payable | $ | 224,000 | $ | 197,000 | ||||||||
Long-term debt | 824,000 | 824,000 | ||||||||||
Owners' equity | 759,000 | 753,524 | ||||||||||
Total liabilities and owners' equity | $ | 1,807,000 | $ | 1,774,524 | ||||||||
Beaker Company | |||||||||||
Income Statement | |||||||||||
Sales | $ | 2,480,000 | |||||||||
Less operating expenses | 2,033,600 | ||||||||||
Net operating income | 446,400 | ||||||||||
Less interest and taxes: | |||||||||||
Interest expense | $ | 99,100 | |||||||||
Tax expense | 151,776 | 250,876 | |||||||||
Net income | $ | 195,524 | |||||||||
The company paid dividends of $201,000 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 34%. What was the company's residual income last year?
TB Problem Qu. 10-168 Financial data for Beaker... Financial data for Beaker Company for last year...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 290,000 $ 451,280 Accounts receivable 209,000 193,000 Inventory 282,000 232,000 Plant and equipment (net) 430,000 393,000 Investment in Cedar Company 304,000 255,000 Land (undeveloped) 241,000 241,000 Total assets $ 1,756,000 $ 1,765,280 Liabilities and owners' equity: Accounts payable $ 208,000 $ 175,000 Long-term debt 824,000 824,000 Owners' equity 724,000 766,280 Total liabilities and owners' equity $ 1,756,000...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 290,000 $ 451,280 Accounts receivable 209,000 193,000 Inventory 282,000 232,000 Plant and equipment (net) 430,000 393,000 Investment in Cedar Company 304,000 255,000 Land (undeveloped) 241,000 241,000 Total assets $ 1,756,000 $ 1,765,280 Liabilities and owners' equity: Accounts payable $ 208,000 $ 175,000 Long-term debt 824,000 824,000 Owners' equity 724,000 766,280 Total liabilities and owners' equity $ 1,756,000...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 263,000 $ Accounts receivable 126,000 31,164 215,000 266,000 473,000 255,000 466,000 Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) 221,000 293,000 497,000 497,000 Total assets $1,828,000 $1,775,164 Liabilities and owners' equity: Accounts payable Long-term debt $ 164,000 884,000 780,000 $ 228,000 884,000 663,164 Owners' equity Total liabilities and owners' equity $1,828,000 $1,775,164 Beaker Company...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 263,000 $ 31,164 Accounts receivable 126,000 215,000 Inventory 255,000 266,000 Plant and equipment (net) 466,000 473,000 Investment in Cedar Company 221,000 293,000 Land (undeveloped) 497,000 497,000 Total assets $ 1,828,000 $ 1,775,164 Liabilities and owners' equity: Accounts payable $ 164,000 $ 228,000 Long-term debt 884,000 884,000 Owners' equity 780,000 663,164 Total liabilities and owners' equity $ 1,828,000...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 263,000 $ 31,164 Accounts receivable 126,000 215,000 Inventory 255,000 266,000 Plant and equipment (net) 466,000 473,000 Investment in Cedar Company 221,000 293,000 Land (undeveloped) 497,000 497,000 Total assets $ 1,828,000 $ 1,775,164 Liabilities and owners' equity: Accounts payable $ 164,000 $ 228,000 Long-term debt 884,000 884,000 Owners' equity 780,000 663,164 Total liabilities and owners' equity $ 1,828,000...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Inding Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets $ 335,000 210,000 296,000 500,000 229.000 182.000 $1,760.000 $ 471,760 176,000 264.000 460,000 295,000 182.000 $1.848,760 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $ 190,000 833,000 737.000 $1,760.000 $ 235,000 133,000 780,760 $1.848.760 Beaker Company...
2. Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets $ 252,000 165,000 298,000 470,000 287,000 410,000 $1,882,000 $ 197,853 189,000 236,000 445,000 311,000 410,000 $1,788,853 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $ 227,000 860,000 795,000 $1,882,000 $ 149,000 860,000 779,853 $1,788,853 Beaker...
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (underdeveloped) Total assets $50,000 20,000 30,000 120,000 80,000 170,000 $470,000 $70,000 25,000 35,000 110,000 100,000 170,000 $510,000 $70,000 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity Total liabilities and owners' equity $90,000 250,000 250,000 150,000 $470,000 170,000 $510,000 Beaker Company Income Statement Sales $414,000...
Header Financial data for Beaker Company for last year appear below: Ragapo Inc Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (underdeveloped) Total assets $50,000 20.000 30,000 120,000 80 000 170.000 $470.000 $70,000 25,000 35.000 110,000 100,000 170 000 $510.000 + Liabilities and owners' equity: Accounts payable Long-term deby Owners' equity Total liabilities and owners' equity $70,000 250,000 150.000 $470.000 $90,000 250,000 170.000 $510.000 Beaker Company...
Financial data for Beaker Company for last year appear below: Ragapo Inc. Statements of Financial Position Beginning Balance Ending Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (underdeveloped) Total assets $50,000 20,000 30,000 120,000 80,000 170,000 S470,000 $70,000 25,000 35,000 110,000 100,000 170,000 $510.000 Liabilities and owners' equity: Accounts payable Long-term deby Owners' equity Total liabilities and owners' equity $70,000 250,000 150,000 $470.000 $90,000 250,000 170.000 $510.000 Beaker Company Income Statement Sa.es Less...