A. Calculate the operating return on assets.

B. Determine the effective interest rate paid on the long-term debt.

C. Calculate the NOPAT margin. How does this compare with the results for the net profit margin? Did the owners benefit from the use of interest-bearing long-term debt?

BIKE-WITH-US CORPORATION INCOME STATEMENT Sales $325,000 Operating costs 285,000 Depreciation 10,000 Interest 5,000 Taxes 6,000 Cash $1,000 Receivables 30,000 Inventories 50,000 Fixed assets, net 50,000 Payables 11,000 Accruals 10,000 Long-term loan 50,000 Stockholders' equity 60,000