A.What is the operating return on assets.

B.What is 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?

\begin{tabular}{l|r|r} Sales & & $325,000 \\ Expenses: & & \\ \hline Operating costs & $285,000 & \\ \hline Depreciationexpense & $10,000 \\ \hline Total expenses & & $295,000 \\ \hline Incomebeforeinterestandtaxes & $30,000 \\ \hline InterestexpenseIncomebeforeincometaxes & $5,000 \\ \hline & & $25,000 \\ \hline Income tax & \\ expense & & \\ & & $6,000 \\ \hline Net income & & \\ \hline \hline \end{tabular}