Ceradyne Mills is a division of lowa Woolen Products. For the most recent year, Ceradyne had net income of $20,400,000. Included income was interest expense of $1,148,000. The operation's tax rate is 15 percent. Total assets of Ceradyne Mills are $192,700,000 current liabilities are $42,640,000, and $29,520,000 of the current liabilities are noninterest bearing. Calculate NOPAT, invested capital, and ROI for Ceradyne Mills. (Round ROI to 2 decimal places, e.g. 5.25%.) NOPAT Invested capital tA $

Ceradyne Mills is a division of lowa Woolen Products. For the most recent year, Ceradyne had net income of $20,400,000. Included income was interest expense of $1,148,000. The operation's tax rate is 15 percent. Total assets of Ceradyne Mills are $192,700,000 current liabilities are $42,640,000, and $29,520,000 of the current liabilities are noninterest bearing. Calculate NOPAT, invested capital, and ROI for Ceradyne Mills. (Round ROI to 2 decimal places, e.g. 5.25%.) NOPAT Invested capital tA $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In its first year of operations, HD Corporation reported pretax accounting income of $820 million for the current year. Depreciation reported in the tax return in excess of depreciation in the income statement was $1,020 million. The excess tax will reverse itself evenly over the next three years. The current year's tax rate of 25% will be changed under the current law to 30% next year and 35% for all subsequent years. At the end of the current year, the deferred tax liability related to the excess depreciation for HD Corp, will be: Multiple Choice $340 million $306 million $408 million $357 million
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