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 $132,000 last year. The “Investment in Pine Company” on the statement of financial position represents an investment in the stock of another company.
a. Compute the company's margin, turnover, and return on investment for last year. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “%” sign in your response.) 21.00 Margin Turnover Return on investment 39.48 h The Roari of Director of Windsor for heat minimum required return of 9
b. The Board of Directors of Windsor, Inc. has set a minimum required return of 38%. What was the company's residual income last year? (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” sign in your response.) Residual income $ 39.48. Get Accounting homework help today