Calculate NOPAT, invested capital, and ROI for LaundryMate Products, and comment on the company's profitability.
Calculate NOPAT, invested capital, and ROI for LaundryMate Products, and comment on the company's profitability.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![EXCEL
EXERCISE 12-8. Calculating ROI [LO 2] For fiscal year 2017, LaundryMate Products had income
as follows:
Sales
Less:
Cost of goods sold
Selling and administrative expense
Interest expense
Income before taxes
Less income taxes
Net income
$55,000,000
38,400,000
5,700,000
1,000,000
9,900,000
3,465,000
$ 6,435,000
Total assets were $97,000,000, and noninterest-bearing current liabilities were $3,200,000. The
company has a required rate of return on invested capital equal to 10 percent.
REQUIRED
Calculate NOPAT, invested capital, and ROI for LaundryMate Products, and comment on the
company's profitability.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f89f477-64ed-4f56-baa4-f18b491167cc%2F9fca71c2-e37d-495f-9d97-c1448d4a1712%2Fuipituk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXCEL
EXERCISE 12-8. Calculating ROI [LO 2] For fiscal year 2017, LaundryMate Products had income
as follows:
Sales
Less:
Cost of goods sold
Selling and administrative expense
Interest expense
Income before taxes
Less income taxes
Net income
$55,000,000
38,400,000
5,700,000
1,000,000
9,900,000
3,465,000
$ 6,435,000
Total assets were $97,000,000, and noninterest-bearing current liabilities were $3,200,000. The
company has a required rate of return on invested capital equal to 10 percent.
REQUIRED
Calculate NOPAT, invested capital, and ROI for LaundryMate Products, and comment on the
company's profitability.
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