7. Analyzing accounting data for managerial decisions Accounting data are used to analyze cash flows, and this analysis is critical for decision making. Consider the following case: J&H Corp. recently hired Jeffrey. His immediate mandate was to analyze the company. He has to submit a report on the company's operational efficiency and estimate potential investment in working capital. He has the income statement from last year and the following information from the company's financial reports as well as some industry averages. Last year, J&H Corp. reported a book value of $800 million in current assets, of which 35% is cash, 37% is short-term investments, and the rest is accounts receivable and inventory. The company reported $680.0 million of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable claims last year. There were no changes in the accounts payables during the reporting period. The company, however, invested heavily in plant and equipment to support its operations. It reported a book value of $1,280 million in long-term assets last year. Income Statement For the Year Ended on December 31 (Millions of dollars) J&H Corp. Industry Average Net sales $1,500 $1,875 Operating costs, except depreciation and amortization 1,200 1,500 Depreciation and amortization 60 75 Total operating costs 1,260 Operating income (or EBIT) $240 $300 1,575 Less: Interest 24 45 $216 $255 Earnings before taxes (EBT) Less: Taxes (40%) 86 102 Net income $130 $153 Based on the information given to Jeffrey, he submits a report on January 1 with some important calculations for management to use, both for analysis and to devise an action plan. Which of the following statements in his report are true? Check all that apply. J&H Corp. has $296.0 million in nonoperating assets. The firm uses $1,104.0 million of total net operating capital to run the business. Based on the information on industry averages, J&H Corp. would generate higher profits than the other players in the industry if all players were of a similar size and had no debt or held no financial assets. J&H Corp. has -$176.0 million of noninterest-bearing current assets net of noninterest-charging liabilities. J&H Corp.'s NOPAT is $144.0 million, which is lower than the industry average of $180.0 million