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The financial statements of The New Idea Company this year shows average shareholders’ equity of $837,283...

The financial statements of The New Idea Company this year shows average shareholders’ equity of $837,283 thousand, net operating profit after tax of $66,275 thousand, net income of $29,068 thousand, and average net operating assets of $354,414 thousand. Tax rate for the year is 33%. The company’s Return on Net Operating Assets (RNOA) for the year is (round to two decimal places):

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Answer #1

Net operating profit after tax = $66,275 thousand

Average net operating assets = $354,414 thousand

Return on Net Operating Assets (RNOA) for the year = Net operating profit after tax / Average net operating assets

= 66,275/354,414

= 18.70%


Other information given in the question is not relevant while calculating Return on Net Operating Assets (RNOA).

Kindly comment if you need further assistance. Thanks‼!

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