5.
Frederickson Office Supplies recently reported $10,000 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's taxable income, or earnings before taxes (EBT)?
Select the correct answer.
6.
On 12/31/2020, Heaton Industries Inc. reported retained earnings of $700,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 2020. How much in dividends did Heaton pay during 2020?
Select the correct answer.
7.
EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?
| Sales | $ 3,200.00 |
| Costs | 1,400.00 |
| Depreciation | 250.00 |
| EBIT | $ 1,550.00 |
| Interest expense | 70.00 |
| EBT | $ 1,480.00 |
| Taxes (25%) | 592.00 |
| Net income | $ 888.00 |
8.
Tibbs Inc. had the following data for the most recent year: Net income = $300; Net operating profit after taxes (NOPAT) = $320; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300. What was its return on invested capital (ROIC)?
Select the correct answer.
