Financial data for Bridger Inc. for last year are as follows: The company paid dividends of $197,000
Question:
Financial data for Bridger Inc. for last year are as follows:
The company paid dividends of $197,000 last year. The €œInvestment 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.
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?
Transcribed Image Text:
BRIDGER INC. Balance Sheet Ending Balance Beginning Balance Assets Cash... Accounts receivable.. $ 150,000 500,000 510,000 840,000 450,000 270,000 $2.720,000 $ 45,000 360,000 590,000 865,000 420,000 270,000 Inventory... Plant and equipment, net.. Investment in Brier Company. Land (undeveloped)... Total assets... Liabilities and shareholders' equity Accounts payable.. Long-term debt... Shareholders' equity. Total liabilities and shareholders' equity.. $2,650.000 $ 380,000 1000,000 1270,000 $ 340,000 1000,000 1380,000 $2,720.000 $2,650.000 BRIDGER INC. Income Statement Sales.... Operating expenses Operating income . Interest and taxes: $4180,000 3,553,000 627,000 $ 120,000 Interest expense Tax expense.... Net income.. 200,000 320,000 $ 307,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (20 reviews)
1 Operating assets do not include investments in other companies ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Question Posted:
Students also viewed these Managerial Accounting questions
-
A Co. has annual fixed Costs Of % 1,40,000. In 2012 sales amounted to 6,00,000, as Compared with 2% 4,950,000 in 2011, and profit in 2012 was 2 42,000 higher than that in 2011. i) At what level of...
-
Which of the following statements does not describe a characteristic of management accounting? A) Management accounting places a great deal of emphasis on the future. B) Management accounting must...
-
An electric dipole, consisting of two opposite charges of magnitude 2 10 Ceach separated by a distance 3 cm is placed in an electric field of magnitude 2 10 N/C along the direction making 90 with...
-
Assume electricity is generated by three technologies: a base load technology with cost function C b (x b ) and proportional emission coefficient b ; gas turbines with cost function C g (x g ) and...
-
What factors have resulted in the rapid rise in outsourcing of jobs overseas?
-
A project has annual cash flows of $6,000 for the next 10 years and then $6,500 each year for the following 10 years. The IRR of this 20-year project is 13.4%. If the firm's WACC is 9%, what is the...
-
P 21-2 Enterprise fund journal entries and trial balance The following transactions relate to the Fiedler County Utility Plant, a newly established municipal facility financed with debt secured...
-
Equipment that cost $80,000 and has accumulated depreciation of $63,000 is exchanged for similar equipment with a fair value of $35,000 and $15,000 cash is received. The exchange lacked commercial...
-
What is the beta of the following portfolio
-
Herbal Care Corp., a distributor of herb-based sunscreens, is ready to begin its third quarter, in which peak sales occur. The company has requested a $40,000, 90-day loan from its bank to help meet...
-
Faced with headquarters desire to add a new product line, Stefan Grenier, manager of Bilti Products East Division, felt that he had to see the numbers before he made a move. His divisions ROI has led...
-
The Switch division of Tornax Inc. produces a small switch that is used by various companies as a component part in their products. Tornax operates its divisions as autonomous units, giving its...
-
Quantity A Quantity B -9 3 -27 a. Quantity A is greater. b. Quantity B is greater. c. The two quantities are equal. d. The relationship cannot be determined from the information given.
-
7. Chicago Corp. obtained the following information from the Raw Materials Inventory account and purchasing records for the first quarter of the current year: Beginning Raw Materials Ending Raw...
-
Suppose that i t =6% (n=1), and that future short term interest rates (n=1) for the next 3 years (starting next year) are expected to be: 4%, 2%, 2%. Suppose that the liquidity premium is zero for...
-
Mechanical Vibrations HW Use the modal analysis and numerical integration to compute and plot the time response of the system, which has the equations of motion [8 0 01 (1) 48 -12 01(x1 0 0 8 02-12...
-
Submit excel file with graph and exchange rate analysis. FOREIGN EXCHANGE RATESTHE YEN FOR DOLLARS. The Federal Reserve System Web site, www.federalreserve.gov/releases/H10/hist , provides historical...
-
Part 1: There are many types of communication styles used in the workplace. Choose what you think is your leadership style: north, south, east, or west. Click The Leadership Compass Self-Assessment...
-
You have audited the financial statements of the Heft Company, a December 31 year end client, for several years. The interim phase of the engagement, completed on August 31, included confirming...
-
A new car sold for $31,000. If the vehicle loses 15% of its value each year, how much will it be worth after 10 years?
-
Contrast the three major models of decision making, outlining the assumptions associated with each.
-
Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $2 per...
-
Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $2 per...
-
Morton Companys variable manufacturing overhead should be $4.50 per standard direct labor-hour and fixed manufacturing should be $270,000 per year. The company manufactures a single product that...
-
La empresa D cobra efectivo de un cliente que compr servicios de consultora a cuenta hace 3 semanas. Qu cuenta aumentara la empresa D? A. Efectivo B. Cuentas por pagar C. Cuentas por cobrar D....
-
A wholesaler sells on terms of 1/15, net 45. Gross sales last year were $6,935,000, and accounts receivable averaged $665,000. Half of its customers paid on the 15th day and took discounts. What are...
-
Charles is looking to buy the house on the hill that is listed for $415,000. The Bank said that it would approve his loan for 30 years at 3.60% if he puts 5.0% down, and his monthly morgtgage...
Study smarter with the SolutionInn App