Financial Data for Beaker Company for Last Year Appear Below $\quad$

question 22

Essay

Financial data for Beaker Company for last year appear below:

$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Beaker Company
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Income Statement
$\begin{array}{|l|r|r|}\hline \text { Sales } & & \$ 414,000 \\\hline \text { Less operating expenses } & & 351,900 \\\hline \text { Net operating income } & & 62,100 \\\hline \text { Less interest and taxes: } & & \\\hline \text { Interest expense } & \$ 30,000 & \\\hline \text { Tax expense } & 10,000 & 40,000 \\\hline \text { Net income } & & \$ 22,100 \\\hline\end{array}$ The company paid dividends of $2,100 last year.The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company.Required:
a.Compute the company's margin,turnover,and return on investment for last year.b.The Board of Directors of Beaker Company has set a minimum required return of 20%.What was the company's residual income last year?

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Definitions:

Advocate Colonization

Supporting the establishment of colonies or the relocation of people, often in the context of historical movements to resettle freed African Americans in Africa.

Black Woman

Describes a female of African descent, often recognizing the unique cultural and social experiences within this identity.

United States

A country in North America, comprising 50 states, known for its significant influence on world politics, economy, and culture.

American Colonization Society

An organization founded in 1816 to assist free black people in emigrating to Africa.