For fiscal year 2021, Katherine’s Department Store had net income of $6,000,000. Interest expense was $2,250,000, and the company’s tax rate on income was 20 percent. Total assets were $80,000,000, and noninterest-bearing current liabilities were $6,700,000. The company’s cost of capital (required rate of return) is 10 percent. 

Required 

Calculate NOPAT, invested capital, and residual income for Katherine’s Department Store and comment on the company’s profitability.