Homework Answers
4.
Invested Capital = Net working capital + property, plant and equipment
Net working capital = Current asset - Current liability
Current asset = Operating cash + account receivable + inventory
Current liability = accounts payable + accrued expenses
Invested Capital last year = [(22+220+330) - (275+165)] + 440 = [572-440]+440 = 572
Invested Capital current year = [(24+242+363) - (303+182)] + 484 = [629-485]+484 = 628
Average Invested Capital = (Invested Capital last year + Invested Capital current year) / 2
Average Invested Capital = (572 + 628) / 2 = 600
5.
NOPLAT = Operating profit (EBIT) * (1-tax rate)
= 121 * (1-30%) = 84.7 or 85 (rounded off)
ROIC = NOPLAT / Average invested capital
ROIC = 85/600 = 14.1%
Summary
4. Average Invested Capital = b) $600
5. NOPLAT and ROIC = d) $85, 14.1 percent.
Add Answer to:
Qestions 4 & 5
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QUESTION 12
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QUESTION 13
" Tables 3 and 4 show the income statement and balance sheet for
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10 points ...
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QUESTION 12
The above tables show the income statement and balance sheet for
a certain company. All quantities shown are in millions of
dollars.
What is the company's ROE in 2020?
QUESTION 13
" Tables 3 and 4 show the income statement and balance sheet for
a certain company. All quantities shown are in millions of dollars.
What is the company's ROA in 2020? Note: Express your answers in
strictly numerical terms, and IN million of USDs."
10 points ...
help
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