Solved by verified expert :(2.7) Net operating working
capital C K
[i].
Rao Corporation has the following
balance sheet. How much net operating
working capital does the firm have?
Cash
$ 10
Accounts payable
$ 20
Short-term investments
Accruals
20
Accounts receivable
50
Notes payable
50
Inventory
40
Current liabilities
$ 90
Current assets
$130
Long-term debt
0
Net fixed assets
100
Common equity
30
Retained earnings
50
Total assets
$230
Total liab. & equity
$230
a.
$54.00
b.
$60.00
c.
$66.00
d.
$72.60
e.
$79.86
(2.7) Net operating profit after
taxes (NOPAT) C K
[ii].
Bae Inc. has the following income
statement. How much net operating
profit after taxes (NOPAT) does the firm have?
Sales
$2,000.00
Costs
1,200.00
Depreciation
100.00
EBIT
$ 700.00
Interest expense
200.00
EBT
$ 500.00
Taxes (35%)
175.00
Net income
$ 325.00
a.
$370.60
b.
$390.11
c.
$410.64
d.
$432.25
e.
$455.00
(2.7) Net operating profit after
taxes (NOPAT) C K
[iii].
EP Enterprises has the following
income statement. How much net
operating profit after taxes (NOPAT) does the firm have?
Sales
$1,800.00
Costs
1,400.00
Depreciation
250.00
EBIT
$ 150.00
Interest expense
70.00
EBT
$ 80.00
Taxes (40%)
32.00
Net income
$ 48.00
a.
$81.23
b.
$85.50
c.
$90.00
d.
$94.50
e.
$99.23
(2.7) Return on invested capital
(ROIC) C K
[iv].
Tibbs Inc. had the following data
for the year ending 12/31/07: Net
income = $300; Net operating profit after taxes (NOPAT) = $400; Total assets
= $2,500; Short-term investments = $200; Stockholders’ equity = $1,800; Total
debt = $700; and Total operating capital = $2,300. What was its return on invested capital
(ROIC)?
a.
14.91%
b.
15.70%
c.
16.52%
d.
17.39%
e.
18.26%
(2.7) Total operating capital C K
[v].
Zumbahlen Inc. has the following
balance sheet. How much total
operating capital does the firm have?
Cash
$ 20.00
Accounts payable
$ 30.00
Short-term investments
50.00
Accruals
50.00
Accounts receivable
20.00
Notes payable
30.00
Inventory
60.00
Current liabilities
$110.00
Current assets
$150.00
Long-term debt
70.00
Gross fixed assets
$140.00
Common stock
30.00
Accumulated deprec.
40.00
Retained earnings
40.00
Net fixed assets
$100.00
Total common equity
$ 70.00
Total assets
$250.00
Total liab. & equity
$250.00
a.
$114.00
b.
$120.00
c.
$126.00
d.
$132.30
e.
$138.92
