Financial data for Bridger, Inc., for last year are as follows:
Bridger, Inc.
Balance Sheet
Beginning
Balance Ending
Balance
Assets
Cash $ 133,000 $ 139,000
Accounts receivable 345,000 471,000
Inventory 577,000 471,000
Plant and equipment, net 855,000 869,000
Investment in Brier Company 402,000 427,000
Land (undeveloped) 246,000 253,000
Total assets $ 2,558,000 $ 2,630,000
Liabilities and Stockholders' Equity
Accounts payable $ 375,000 $ 341,000
Long-term debt 982,000 982,000
Stockholders' equity 1,201,000 1,307,000
Total liabilities and stockholders' equity $ 2,558,000 $ 2,630,000
Bridger, Inc.
Income Statement
Sales $ 5,404,000
Operating expenses 4,593,400
Net operating income 810,600
Interest and taxes:
Interest expense $ 117,000
Tax expense 197,000 314,000
Net income $ 496,600
The 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 $