Extracted text: Beaker Company Income Statement Sales Less operating expenses Net operating income Less interest and taxes: $414,000 351,900 62,100 Interest expense Tax expense $30,000 10,000 40,000 $22,100 Operating Income 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) Calculate the average operating assets for the year. (Show your calculations) b) Compute the company's margin, turnover, and return on investment for last year. c) The Board of Directors of Beaker Company have set a minimum required return of 18%. What was the company's residual income last year?
Extracted text: Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: $ 50,000 $ 70,000 25,000 35,000 110,000 100,000 Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar Company Land (undeveloped) Total assets 20,000 30,000 120,000 80,000 170,000 $470,000 170,000 $510,000 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity $ 70,000 250,000 150,000 $ 90,000 250,000 170,000 Total liabilities and owners' equity $470,000 $510,000