Acct 505 Week 6 Quiz
1.Question :(TCO D) Financial data for Beaker Company for last year appear below.Beaker CompanyStatement of Financial PositionBeginningEnding BalanceBalanceAssetsCash$50,000$70,000Accounts receivable20,00025,000Inventory30,00035,000Plant and Equipment (net)120,000110,000Investment in Cedar Company80,000100,000Land (undeveloped)170,000170,000Total Assets$470,000510,000Liabilities and Owners EquityAccounts payable$70,000$90,000Long-term debt250,000250,000Owners equity150,000170,000Total liabilities and owners equity$470,000$510,000 Beaker Company Income StatementSales$414,000Less Operating Expenses351,900Net Operating Income62,100Less Interest and Taxes    Interest Expense$30,000    Tax Expense10,00040,000Net Income$22,000The 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 companys 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 companys residual income last year?

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Beaker Company And Financial Data. (June 13, 2021). Retrieved from https://www.freeessays.education/beaker-company-and-financial-data-essay/