Question
4-20 MARKS Use the following date to answer part a, b, c, and d. You must show all calculations. Total assets Cups Dept Plates Dept
4-20 MARKS Use the following date to answer part a, b, c, and d. You must show all calculations. Total assets Cups Dept Plates Dept $1,080,000 $782,500 Total liabilities 275,000 127,000 Net income 235,000 70,000 After-tax income 186,000 55,404 Revenues $1,650,000 $900,000 WACC 9.5% 9.5% 2 Required: Calculate the following for the Cups Department and Plates Department a. Return on sales You must show all calculations. You must show all calculations. 4 MARKS b. Return on investment based on total assets employed 4 MARKS c. Economic value added. You must show all calculations. 6 MARKS d. Residual income based on net operating income. You must show all calculations. 6 MARKS
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