Problem information

Sales = $18,000

COGS = $11,000

PPE = $80,000

Cash = $2,500

A/C Rec= $4,500

Inventory= $6,200

Interest = $560

Tax rate = 25%

Operating expenses= $3,500

Question

Calculate the EBIT

What is the net income of this company?

Find the average operating assets if the operating assets of last year was $94,000

Find the ROI.

Calculate margin and turnover.

Calculate margin and turnover to calculate ROI.

Compare the 2 ROI you found.