NOPAT = (Net Income/(1-Tax rate) + Interest Expense)(1-Tax rate)
= (19,400,000/0.6+ 1,460,000)(1-40%)
= $20,276,000
Invested Capital = Total Assets – Non interest bearing liabilities
= 237,000,000-37,000,000
= $200,000,000
ROI = NOPAT/Invested capital
= 20,276,000/200,000,000
= 10.138%
i.e. 10.14%
Duffy Dog Mills is a division of Iowa Woolen Products. For the most recent year, Duffy...
Ridgewood Mills is a division of Iowa Woolen Products. For the most recent year, Ridgewood had net income of $20,000,000. Included in income was interest expense of $1,450,000. The operation’s tax rate is 40 percent. Total assets of Ridgewood Mills are $230,000,000, current liabilities are $52,400,000, and $36,000,000 of the current liabilities are noninterest bearing. Calculate NOPAT, invested capital, and ROI for Ridgewood Mills. (Round ROI to 2 decimal places, e.g. 15.25%.) NOPAT $ Invested capital $ ROI %
Toy Co Mills is a division of Iowa Woolen Products. For the most recent year, Toy Co had net income of $20,600,000. Included in income was interest expense of $1,490,000. The operation’s tax rate is 40 percent. Total assets of Toy Co Mills are $236,000,000, current liabilities are $52,000,000, and $35,000,000 of the current liabilities are noninterest bearing. Calculate NOPAT, invested capital, and ROI for Toy Co Mills. (Round ROI to 2 decimal places, e.g. 15.25%.) NOPAT $ Invested capital...
Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $44 million. Included in the income was interest expense of $2,900,000. The company's tax rate was 40%. Total assets were $470 million, current liabilities were $107,000,000, and $74,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places
For fiscal year 2017, Sweetwater Products had income as follows: Sales $54,500,000 Less: Cost of goods sold 38,200,000 Selling and administrative expense 5,750,000 Interest expense 1,010,000 Income before taxes 9,540,000 Less income taxes 3,339,000 Net income $6,201,000 Total assets were $99,000,000, and noninterest-bearing current liabilities were $3,500,000. The company has a required rate of return on invested capital equal to 11 percent. Calculate NOPAT, invested capital, and ROI for Sweetwater Products. (Round ROI to 2 decimal places, e.g. 15.25%.) NOPAT...
For fiscal year 2017, Crown Point Products had income as follows: Sales $55,600,000 Less: Cost of goods sold 38,800,000 Selling and administrative expense 5,760,000 Interest expense 1,090,000 Income before taxes 9,950,000 Less income taxes 3,482,500 Net income $6,467,500 Total assets were $99,000,000, and noninterest-bearing current liabilities were $3,300,000. The company has a required rate of return on invested capital equal to 10 percent. Calculate NOPAT, invested capital, and ROI for Crown Point Products. (Round ROI to 2 decimal places, e.g....
Exercise 12-8 For fiscal year 2017, Golden Products had income as follows: $54,000,000 Sales Less: Cost of goods sold Selling and administrative expense Interest expense Income before taxes Less income taxes Net income 38,200,000 5,670,000 1,030,000 9,100,000 3,185,000 $5,915,000 Total assets were $95,000,000, and noninterest-bearing current liabilities were $3,500,000. The company has a required rate of return on invested capital equal to 12 percent. Calculate NOPAT, invested capital, and ROI for Golden Products. (Round ROI to 2 decimal places, e.g....
For fiscal year 2018, Covington Department Store had net income of $6,070,000. Interest expense was $2,276,250, and the company’s tax rate on income was 40 percent. Total assets were $72,238,000, and noninterest-bearing current liabilities were $6,049,900. The company’s cost of capital (required rate of return) is 10 percent. Calculate NOPAT, invested capital, and residual income for Covington Department Store. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).) NOPAT $ Invested capital $ Residual income...
Exercise 12-9 For fiscal year 2018, Hiroole Department Store had net income of $6,090,000. Interest expense was $2,283,750, and the company's tax rate on income was 40 percent. Total assets were $74,848,000, and noninterest-bearing current liabilities were $6,268,500. The company's cost of capital (required rate of return) is 10 percent. Calculate NOPAT, invested capital, and residual income for Hiroole Department Store. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).) NOPAT $ Invested capital $...
For fiscal year 2018, Walla Walla Department Store had net income of $6,010,000. Interest expense was $2,253,750, and the company’s tax rate on income was 40 percent. Total assets were $80,351,000, and noninterest-bearing current liabilities were $7,148,100. The company’s cost of capital (required rate of return) is 10 percent. Calculate NOPAT, invested capital, and residual income for Walla Walla Department Store. (Enter negative answers preceding either - sign, e.g. -45 or in parentheses, e.g. (45).) NOPAT $ Invested capital $...
Sipacore Hospital is a division of Superior Healthcare that is organized as an investment center. In the past year, the hospital reported an after-tax income of $3,600,000. Total interest expense was $1,700,000, and the hospital’s tax rate was 35 percent. Hospital assets totaled $35,300,000, and noninterest-bearing current liabilities were $11,100,000. Superior has established a required rate of return equal to 17 percent of invested capital. Calculate the residual income/EVA of Sipacore Hospital. (Enter negative answers preceding either - sign, e.g....