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The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Acco nts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income 2021 $ 3,000 15,000 18,000 $36,000 24,000 $60,000 $20,100 9,900 7,000 $37,000 11,000 $48,000 2,520 9,480 $12,000 $60,000 2021 $96,000 89,280 1,920 $ 4,800 1,080 $ 3,720 930 $ 2,790 Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price What is the firm's return on invested capital? Do not round your intermediate calculations. 500.00 $976.50 6% 25% $66.96

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Acco nts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income 2021 $ 3,000 15,000 18,000 $36,000 24,000 $60,000 $20,100 9,900 7,000 $37,000 11,000 $48,000 2,520 9,480 $12,000 $60,000 2021 $96,000 89,280 1,920 $ 4,800 1,080 $ 3,720 930 $ 2,790 Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price What is the firm's return on invested capital? Do not round your intermediate calculations. 500.00 $976.50 6% 25% $66.96

FINANCIAL ACCOUNTING
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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The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Acco nts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income 2021 $ 3,000 15,000 18,000 $36,000 24,000 $60,000 $20,100 9,900 7,000 $37,000 11,000 $48,000 2,520 9,480 $12,000 $60,000 2021 $96,000 89,280 1,920 $ 4,800 1,080 $ 3,720 930 $ 2,790 Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price What is the firm's return on invested capital? Do not round your intermediate calculations. 500.00 $976.50 6% 25% $66.96
Transcribed Image Text:The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Acco nts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes (25%) Net income 2021 $ 3,000 15,000 18,000 $36,000 24,000 $60,000 $20,100 9,900 7,000 $37,000 11,000 $48,000 2,520 9,480 $12,000 $60,000 2021 $96,000 89,280 1,920 $ 4,800 1,080 $ 3,720 930 $ 2,790 Other data: Shares outstanding (millions) Common dividends (millions of $) Int. rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price What is the firm's return on invested capital? Do not round your intermediate calculations. 500.00 $976.50 6% 25% $66.96
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