Financial data for
Beaker Company
for last year appear below.
|
Statement of Financial Position |
|||
|
Beginning |
Ending |
||
|
Balance |
|||
|
Assets |
|||
|
Cash |
$50,000 |
$70,000 |
|
|
Accounts receivable |
20,000 |
25,000 |
|
|
Inventory |
30,000 |
35,000 |
|
|
Plant and Equipment (net) |
120,000 |
1 |
10,000 |
|
Investment in Cedar Company |
80,000 |
100,000 |
|
|
Land (undeveloped) |
170,000 |
||
|
Total Assets |
$470,000 |
510,000 |
|
|
Liabilities and Owners’ Equity |
|||
|
Accounts payable |
$90,000 |
||
|
Long-term debt |
250,000 |
||
|
Owner’s equity |
150,000 |
||
|
Total liabilities and owner’s equity |
$510,000 |
|
Income Statement |
|
|
Sales |
$414,000 |
|
Less Operating Expenses |
351,900 |
|
Net Operating Income |
62,100 |
|
Less Interest and Taxes |
|
|
Interest Expense |
$30,000 |
|
Tax Expense |
40,000 |
|
Net Income |
$22,000 |
The company paid dividends of $2,100 last year. The “Investment in Cedar Company” on the statement of financial position represents an investment in the stock of another company. Required: i. Compute the company’s margin, turnover, and return on investment for last year. ii. The board of directors of Beaker Company has set a minimum required return of 20%. What was the company’s residual income last year?
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Achiever Papers is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Dissertation Writing Service Works
First, you will need to complete an order form. It's not difficult but, if anything is unclear, you may always chat with us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download