Question: Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that

Jane Doe is a private company which a management accountant is analyzing

Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below: Current liabilities Notes payable Equity Personal car Tax rate Net income Sales Interest on debt Canada bond rate TSX index Jan TSX index Dec Beta Cost of training workers Research and Development Current assets 4500 25600 150000 15000 30% 19500 56200 5. Calculate EVA? 8% 2% 14850 15200 1.5 23000 98000 $54000 REQUIRED 1. Calculate interest expense, tax and EBIT 2. Calculate the operating assets of the company. 3. Calculate ROI and Residual Income 4. What are the major criticisms directed towards the use of Return on Investment.

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ANSWER 1 Interest expense2048 Tax expense835714 EBIT 2990514 ... View full answer

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