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Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending Balance Beginning Balance Assets Cash $ 153,000 $ 148,000 Accounts receivable 530,000 390,000 Inventory 540,000 580,000 Plant and equipment, net 817,000 842,000 Investment in Brier Company 480,000 450,000 Land (undeveloped) 300,000 300,000 Total assets $2,820,000 $2,710,000 Liabilities and shareholders' equity Accounts payable $ 370,000 $ 410,000 Long-term debt 1,100,000 1,100,000 Shareholders' equity 1,350,000 1,200,000 Total liabilities and shareholders' equity $ 2,820,000 $ 2,710,000 BRIDGER INC. Income Statement Sales $ 4,000,000 Operating expenses 3,440,000 Operating income 560,000 Interest and taxes: Interest expense $ 123,000 Tax expense 203,000 326,000 Net income $ 234,000 The company paid dividends of $120,000 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.) 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?

Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending Balance Beginning Balance Assets Cash $ 153,000 $ 148,000 Accounts receivable 530,000 390,000 Inventory 540,000 580,000 Plant and equipment, net 817,000 842,000 Investment in Brier Company 480,000 450,000 Land (undeveloped) 300,000 300,000 Total assets $2,820,000 $2,710,000 Liabilities and shareholders' equity Accounts payable $ 370,000 $ 410,000 Long-term debt 1,100,000 1,100,000 Shareholders' equity 1,350,000 1,200,000 Total liabilities and shareholders' equity $ 2,820,000 $ 2,710,000 BRIDGER INC. Income Statement Sales $ 4,000,000 Operating expenses 3,440,000 Operating income 560,000 Interest and taxes: Interest expense $ 123,000 Tax expense 203,000 326,000 Net income $ 234,000 The company paid dividends of $120,000 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.) 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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending Balance Beginning Balance Assets Cash $ 153,000 $ 148,000 Accounts receivable 530,000 390,000 Inventory 540,000 580,000 Plant and equipment, net 817,000 842,000 Investment in Brier Company 480,000 450,000 Land (undeveloped) 300,000 300,000 Total assets $2,820,000 $2,710,000 Liabilities and shareholders' equity Accounts payable $ 370,000 $ 410,000 Long-term debt 1,100,000 1,100,000 Shareholders' equity 1,350,000 1,200,000 Total liabilities and shareholders' equity $ 2,820,000 $ 2,710,000 BRIDGER INC. Income Statement Sales $ 4,000,000 Operating expenses 3,440,000 Operating income 560,000 Interest and taxes: Interest expense $ 123,000 Tax expense 203,000 326,000 Net income $ 234,000 The company paid dividends of $120,000 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.) 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?
Transcribed Image Text:Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending Balance Beginning Balance Assets Cash $ 153,000 $ 148,000 Accounts receivable 530,000 390,000 Inventory 540,000 580,000 Plant and equipment, net 817,000 842,000 Investment in Brier Company 480,000 450,000 Land (undeveloped) 300,000 300,000 Total assets $2,820,000 $2,710,000 Liabilities and shareholders' equity Accounts payable $ 370,000 $ 410,000 Long-term debt 1,100,000 1,100,000 Shareholders' equity 1,350,000 1,200,000 Total liabilities and shareholders' equity $ 2,820,000 $ 2,710,000 BRIDGER INC. Income Statement Sales $ 4,000,000 Operating expenses 3,440,000 Operating income 560,000 Interest and taxes: Interest expense $ 123,000 Tax expense 203,000 326,000 Net income $ 234,000 The company paid dividends of $120,000 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.) 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?
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