Using the weighted average net income from below, calculate the net cash flows to invested capital.

Assume depreciation is $$400000,$ capital expenditures are $$300,000,$ additions to net working capital are

$$100,000$ plus $$60,000$ interest expense net of the deduction resulting from interest as a tax deduction.

Sample Company

Weighted Average Net Cash Flows to Invested Capital

December $31,2022$

Weighted average adjusted net income

Non$-$cash charges $($e$.$g$.$ depreciation, amortization, deferred revenue, deferred taxes$)$

Capital expenditures necessary to support projected operations

$($Additions$)$ deletions to net working capital necessary to support projected operations

Interest expense $($net of tax deduction resulting from interest as a tax deductible expense$)$

Weighted net cash flows to invested capital