Financial data for Bridger, Inc., for last year are as follows: - 14825

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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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