Company’s Residual Income Assignment | Top Universities

Financial data for Windsor, Inc. for last year appear below. Ending Balance 00:07:08 Windsor, Inc. Statements of Financial Position Beginning Balance Assets: Cash $ 356.000 Accounts receivable 143,000 Inventory 284,000 Plant and equipment) 467,000 Investment in Pine Company 238,000 Land (undeveloped) 278,000 $ 318,575 179.000 259,000 445,000 326,000 278,000 Total assets $1,766,000 $1,805,575 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity $ 227,000 813,000 726,000 $ 179.000 8 13.000 813.575 Total liabilities and owners' equity $1,766,000 $1,805,575 Windsor, Inc. Income statement $2.350.000 Sales 1.856.500 3- QUIZ – Part 4 Saved Windsor, Inc. Income statement Sales $2,350,000 Less operating expenses 1,856,500 00:07:04 493,500 Net operating come Less interest arxes: Interest expense $ 101,200 172,725 Tax expense 273,925 Net income $ 219,575 The company paid dividends of $132,000 last year. The “Investment in Pine 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. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “%” sign in your response.) 21.00 Margin Turnover Return on investment 39.48 h The Roari of Director of Windsor for heat minimum required return of 9

b. The Board of Directors of Windsor, Inc. has set a minimum required return of 38%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” sign in your response.) Residual income $ 39.48. Get Accounting homework help today