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ACC - Bridger, Inc. Problem




Question;Financial data for Bridger, Inc., for last year are as follows:Bridger, Inc.Balance SheetBeginningBalance EndingBalanceAssets Cash $ 133,000 $ 139,000Accounts receivable 345,000 471,000Inventory 577,000 471,000Plant and equipment, net 855,000 869,000Investment in Brier Company 402,000 427,000Land (undeveloped) 246,000 253,000Total assets $ 2,558,000 $ 2,630,000Liabilities and Stockholders' Equity Accounts payable $ 375,000 $ 341,000Long-term debt 982,000 982,000Stockholders' equity 1,201,000 1,307,000Total liabilities and stockholders' equity $ 2,558,000 $ 2,630,000Bridger, Inc.Income StatementSales $ 5,404,000Operating expenses 4,593,400Net operating income 810,600Interest and taxes: Interest expense $ 117,000 Tax expense 197,000 314,000Net income $ 496,600The company paid dividends of $390,600 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 your intermediate calculations and final answers to 1 decimal place.)Margin %Turnover ROI %2. The board of directors of Bridger, Inc., has set a minimum required return of 18%. What was the company?s residual income last year?Residual income $


Paper#39697 | Written in 18-Jul-2015

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