For fiscal year 2017, LaundryMate Products had income as follows: Sales ................................................................$55,000,000 Less: Cost of goods sold

Question:

For fiscal year 2017, LaundryMate Products had income as follows:

Sales ................................................................$55,000,000

Less:

Cost of goods sold ...............................................38,400,000

Selling and administrative expense .............................5,700,000

Interest expense ...................................................1,000,000

Income before taxes ................................................9,900,000

Less income taxes ...................................................3,465,000

Net income .........................................................$ 6,435,000

Total assets were $97,000,000, and noninterest-bearing current liabilities were $3,200,000. 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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