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Question 1 Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 256,000...

Question 1 Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 256,000 $ 231,240 Accounts receivable 144,000 192,000 Inventory 310,000 240,000 Plant and equipment (net) 492,000 445,000 Investment in Cedar Company 301,000 286,000 Land (undeveloped) 280,000 280,000 Total assets $ 1,783,000 $ 1,674,240 Liabilities and owners' equity: Accounts payable $ 214,000 $ 238,000 Long-term debt 810,000 810,000 Owners' equity 759,000 626,240 Total liabilities and owners' equity $ 1,783,000 $ 1,674,240 Beaker Company Income Statement Sales $ 2,060,000 Less operating expenses 1,854,000 Net operating income 206,000 Less interest and taxes: Interest expense $ 96,900 Tax expense 63,860 160,760 Net income $ 45,240 The company paid dividends of $178,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Additionally; The Board of Directors of Beaker Company has set a minimum required return of 15%. Please calculate the following: Average Operating Assets (rounded to the nearest whole dollar, with commas) $ Operating Income (rounded to the nearest whole dollar, with commas) $ Sales (rounded to the nearest whole dollar with commas) $ Margin (rounded to the 2 decimal places) % Turnover (rounded to 2 decimal places) Return On Investment (rounded to 2 decimal places) % Residual Income (rounded to the nearest whole dollar, with commas) $

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Expert Solution

Operating Assets does not includes the Investment in other Company and undeveloped Land.
Beginning Balance Ending Balance
Cash $            256,000 $            231,240
Accounts receivable $            144,000 $            192,000
Inventory $            310,000 $            240,000
Plant and equipment (net) $            492,000 $            445,000
Operating Assets $        1,202,000 $        1,108,240
Operating Assets
Beginning Balance $        1,202,000
Ending Balance $        1,108,240
Total $        2,310,240
Average operating assets (Total /2) $        1,155,120
Net operating income $            206,000
Operating Income $            206,000
Sales $        2,060,000
Operating Income $            206,000
Divided by: Sales $        2,060,000
Margin 10.00%
Sales $        2,060,000
Divided by: Average operating assets $        1,155,120
Turnover                       1.78
Operating Income $            206,000
Divided by: Average operating assets $        1,155,120
Return On Investment 17.83%
Average operating assets $        1,155,120
Multiply: Minimum required return rate 15%
Minimum required return $            173,268
Operating Income $            206,000
Less: Minimum required return $            173,268
Residual Income $              32,732

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