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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