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

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.
2. The board of directors of Bridger, Inc., has set a minimum required return of 20%. What was the company's residual income lastyear?

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Bridger, Inc. Balance Sheet Ending Balanice Balance Assets Cash . Plant and equipment, net Investment in Brier Company Land (undeveloped) Total assets 130,000 125,000 340,000 570,000 845,000 400,000 250,000 $2,600,000 $2,530,000 480,000 490,000 820,000 430,000 250,000 Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders'equity 340,000 $ 380,000 1,000,000 1,000,000 1,260,000 1.150,000 $2,600,000 $2,530,000 Bridger, Inic. Income Statement Sales Operating expenses Net operating income. Interest and taxes: $4,180,000 3,553,000 627,000 Interest expense Tax expense 200,000 320,000 Net income S 307,000