For fiscal year 2020, Marx Products had income as follows: Sales Less: Cost of goods sold...

   

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For fiscal year 2020, Marx Products had income as follows: Sales Less: Cost of goods sold Selling and administrative expense Interest expense Income before taxes Less income taxes Net income $55,700,000 38,700,000 5,600,000 1,000,000 10,400,000 1,560,000 $8,840,000 Total assets were $96,000,000, and noninterest-bearing current liabilities were $3,300,000. The company has a required rate of return on invested capital equal to 11 percent and a tax rate of 15 percent. Calculate NOPAT, invested capital, and ROI for Marx Products. (Round ROI to 2 decimal places, e.g. 0.25.) NOPAT Invested capital ROI tA $ tA Comment on the company's profitability. The company performing well. For fiscal year 2020, Marx Products had income as follows: Sales Less: Cost of goods sold Selling and administrative expense Interest expense Income before taxes Less income taxes Net income $55,700,000 38,700,000 5,600,000 1,000,000 10,400,000 1,560,000 $8,840,000 Total assets were $96,000,000, and noninterest-bearing current liabilities were $3,300,000. The company has a required rate of return on invested capital equal to 11 percent and a tax rate of 15 percent. Calculate NOPAT, invested capital, and ROI for Marx Products. (Round ROI to 2 decimal places, e.g. 0.25.) NOPAT Invested capital ROI tA $ tA Comment on the company's profitability. The company performing well.

Answer rating: 100% (QA)

To calculate NOPAT Net Operating Profit After Taxes we need to subtract income taxes from the income ... View the full answer