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ID: 2382149 • Letter: #
Question
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<td colspan="5">Bridger, Inc.<br /> Balance Sheet</td>
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<td> </td>
<td colspan="2">   Beginning<br /> Balance</td>
<td colspan="2">  Ending<br /> Balance</td>
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<tr>
<td width="62%"><strong>Assets</strong></td>
<td width="2%"> </td>
<td width="16%"> </td>
<td width="2%"> </td>
<td width="17%"> </td>
</tr>
<tr bgcolor="#f7f7f7">
<td width="62%">   Cash</td>
<td width="3%">$</td>
<td width="16%">128,000 </td>
<td width="3%">$</td>
<td width="17%">129,000 </td>
</tr>
<tr>
<td width="62%">   Accounts receivable</td>
<td width="3%"> </td>
<td width="16%">344,000 </td>
<td width="2%"> </td>
<td width="17%">480,000 </td>
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<tr bgcolor="#f7f7f7">
<td width="62%">   Inventory</td>
<td width="3%"> </td>
<td width="16%">560,000 </td>
<td width="2%"> </td>
<td width="17%">478,000 </td>
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<td width="62%">   Plant and equipment, net</td>
<td width="3%"> </td>
<td width="16%">808,000 </td>
<td width="2%"> </td>
<td width="17%">793,000 </td>
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<tr bgcolor="#f7f7f7">
<td width="62%">   Investment in Brier Company</td>
<td width="3%"> </td>
<td width="16%">409,000 </td>
<td width="2%"> </td>
<td width="17%">433,000 </td>
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<td width="62%">   Land (undeveloped)</td>
<td width="3%"> </td>
<td width="16%">249,000 </td>
<td width="2%"> </td>
<td width="17%">247,000 </td>
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<tr bgcolor="#f7f7f7">
<td width="62%"> </td>
<td width="3%">
<hr size="1" noshade="noshade" />
</td>
<td width="16%">
<hr size="1" noshade="noshade" />
</td>
<td width="2%">
<hr size="1" noshade="noshade" />
</td>
<td width="17%">
<hr size="1" noshade="noshade" />
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<td width="62%">   Total assets</td>
<td width="3%">$</td>
<td width="16%">2,498,000 </td>
<td width="2%">$</td>
<td width="17%">2,560,000 </td>
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<tr bgcolor="#f7f7f7">
<td width="62%"> </td>
<td width="3%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
<td width="16%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
<td width="2%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
<td width="17%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
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<td width="62%"><strong>Liabilities and Stockholders' Equity</strong></td>
<td width="3%"> </td>
<td width="16%"> </td>
<td width="2%"> </td>
<td width="17%"> </td>
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<td width="62%">   Accounts payable</td>
<td width="3%">$</td>
<td width="16%">379,000 </td>
<td width="2%">$</td>
<td width="17%">348,000 </td>
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<td width="62%">   Long-term debt</td>
<td width="3%"> </td>
<td width="16%">1,037,000 </td>
<td width="2%"> </td>
<td width="17%">1,037,000 </td>
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<tr bgcolor="#f7f7f7">
<td width="62%">   Stockholders' equity</td>
<td width="3%"> </td>
<td width="16%">1,082,000 </td>
<td width="2%"> </td>
<td width="17%">1,175,000 </td>
</tr>
<tr>
<td width="62%"> </td>
<td width="3%">
<hr size="1" noshade="noshade" />
</td>
<td width="16%">
<hr size="1" noshade="noshade" />
</td>
<td width="2%">
<hr size="1" noshade="noshade" />
</td>
<td width="17%">
<hr size="1" noshade="noshade" />
</td>
</tr>
<tr bgcolor="#f7f7f7">
<td width="62%">   Total liabilities and stockholders' equity</td>
<td width="3%">$</td>
<td width="16%">2,498,000 </td>
<td width="2%">$</td>
<td width="17%">2,560,000 </td>
</tr>
<tr>
<td width="62%"> </td>
<td width="3%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
<td width="16%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
<td width="2%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
</td>
<td width="17%">
<hr size="1" noshade="noshade" />
<hr size="1" noshade="noshade" />
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<td colspan="5" width="100%">
<hr size="5" />
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<p>How do I find Avergae Operating Assets from this information?</p>
<p>The company paid dividends of $478,360 last year. The “Investment in Brier Company” on the balance sheet represents an investment in the stock of another company.</p>
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<td colspan="4">Bridger, Inc.<br /> Income Statement</td>
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<td width="54%">    Sales</td>
<td width="20%"> </td>
<td width="4%">$</td>
<td width="22%">5,208,000 </td>
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<tr bgcolor="#f7f7f7">
<td>    Operating expenses</td>
<td> </td>
<td> </td>
<td>4,322,640 </td>
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<tr>
<td> </td>
<td> </td>
<td>
<hr size="1" noshade="noshade" />
</td>
<td>
<hr size="1" noshade="noshade" />
</td>
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<td>   Net operating income</td>
<td> </td>
<td> </td>
<td>885,360 </td>
</tr>
<tr>
<td>    Interest and taxes:</td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr bgcolor="#f7f7f7">
<td>         Interest expense</td>
<td>$ 121,000</td>
<td> </td>
<td> </td>
</tr>
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<td>         Tax expense</td>
<td>193,000</td>
<td> </td>
<td>314,000 </td>
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<tr bgcolor="#f7f7f7">
<td> </td>
<td>
<hr size="1" noshade="noshade" />
</td>
<td>
<hr size="1" noshade="noshade" />
</td>
<td>
<hr size="1" noshade="noshade" />
</td>
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<td>   Net income</td>
<td> </td>
<td>$</td>
<td>
<p>571,360 </p>
<p> </p>
</td>
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</table>
Explanation / Answer
Turnover = Sales/AVge Operating assets So Avge Op Assets = Sales/Turnover = 806,000/1.30 = 620,000
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