Financial data for Bridger, Inc., for last year are as follows: Bridger, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 125,000 $ 130,000 Accounts receivable 340,000 480,000 Inventory 570,000 490,000 Plant and equipment, net 845,000 820,000 Investment in Brier Company 400,000 430,000 Land (undeveloped) 250,000 250,000 ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total assets $ 2,530,000 $ 2,600,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ Liabilities and Stockholders' Equity Accounts payable $ 380,000 $ 340,000 Long-term debt 1,000,000 1,000,000 Stockholders' equity 1,150,000 1,260,000 ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total liabilities and stockholders' equity $ 2,530,000 $ 2,600,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Bridger, Inc. Income Statement Sales $ 4,180,000 Operating expenses 3,553,000 ________________________________________ ________________________________________ Net operating income 627,000 Interest and taxes: Interest expense $ 120,000 Tax expense 200,000 320,000 ________________________________________ ________________________________________ ________________________________________ Net income $ 307,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The company paid dividends of $197,000 last year. The “Investment in Brier Company” on the balance sheet represents an investment in the stock of another company. Required: 1. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round the "Turnover" to 2 decimal places. Omit the "%" sign in your response.) 2. The board of directors of Bridger, Inc., has set a minimum required return of 20%. What was the company’s residual income last year? (Omit the "$" sign in your response.)

Financial data for Bridger, Inc., for last year are as follows:

 

Bridger, Inc. Balance Sheet
	Beginning Balance		Ending Balance
Assets
Cash	$	125,000	$	130,000
Accounts receivable		340,000		480,000
Inventory		570,000		490,000
Plant and equipment, net		845,000		820,000
Investment in Brier Company		400,000		430,000
Land (undeveloped)		250,000		250,000
Total assets	$	2,530,000	$	2,600,000
Liabilities and Stockholders' Equity
Accounts payable	$	380,000	$	340,000
Long-term debt		1,000,000		1,000,000
Stockholders' equity		1,150,000		1,260,000
Total liabilities and stockholders' equity	$	2,530,000	$	2,600,000

 

Bridger, Inc. Income Statement
Sales		$	4,180,000
Operating expenses			3,553,000
Net operating income			627,000
Interest and taxes:
Interest expense	$ 120,000
Tax expense	200,000		320,000
Net income		$	307,000

 

The company paid dividends of $197,000 last year. The “Investment in Brier Company” on the balance sheet represents an investment in the stock of another company.

 

Required:
1.	Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round the "Turnover" to 2 decimal places. Omit the "%" sign in your response.)

 

2.	The board of directors of Bridger, Inc., has set a minimum required return of 20%. What was the company’s residual income last year? (Omit the "$" sign in your response.)

 

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