Question

For fiscal year 2011, LaundryMate Products had income as follows:
Sales ................... $45,000,000
Less:
Cost of goods sold ............ 28,400,000
Selling and administrative expense ....... 5,600,000
Interest expense ............. 1,200,000
Income before taxes ............ 9,800,000
Less income taxes ............. 3,430,000
Net income ............... $ 6,370,000
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 10 percent.

Required
Calculate NOPAT, invested capital, and ROI for LaundryMate Products, and comment on the company’s profitability.



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  • CreatedSeptember 23, 2013
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