Exercise 12-8 calculating ROI-see textbook page 12-29. For fiscal year 2020, laundryMate products had income as follows:

Clipboard Font Alignment Number Styles E47 X V A B C D E F G H C 1 Exercise 12-8 Calculating ROI - SEE TEXTBOOK PAGE 12-29 For fiscal year 2020, LaundryMate Products had income as follows: 3 4 Sales $ 55,000,000 5 Less: Cost of goods sold $ 38,400,000 Selling and administrative expense 5,700,000 00 Interest expense 1,000,000 45, 100,000 9 Income before taxes 9,900,000 10 Less income taxes 1,980,000 11 Net income $ 7,920,000 12 13 Other pertinent information for 2020 follows: 14 Total assets $ 97,000,000 15 Noninterest-bearing current liabilities 3,200,000 16 Required rate of return on invested capital 10% 17 18 RequiredCurrency Of Pucent A B C D E F H 16 Required rate of return on invested capital 10% 17 18 Required 19 Calculate NOPAT, invested capital, and ROI for LaundryMade Products. 20 21 Income tax rate = 22 23 NOPAT - 24 This cell (G23) can be formatted as 1 - income tax rate 25 Invested capital = 26 27 ROI= 28 29 30 Comment on the company's profitability. 31 32 33utoSave . On - = ch12 Excel 12-8 . Saved to this PC v Search Home Insert Page Layout Formulas Data Review View Automate Help Cut Liberation Sans - 11 A A = = 3 Wrap Text Custom Accent5 Accent6 Comma Comma [0] LG Copy Format Painter BE Merge & Center ~ $ ~ % " Conditional Format as Currency Currency [0] Percent Formatting ~ Table Clipboard Font Alignment Number Styles X V f A B C D E F G H C - 39 What-if? 10 Consider the following after you have completed the requirements of E12-8 above. 41 42 Suppose LaundryMate Products had fully depreciated equipment of which it decided to 43 dispose. Calculate ROI after the disposal of the equipment. The amount of fully depeciated $11,000,000 44 45 NOPAT = + [ X )] = 46 47 Adjusted invested capital = = 48 49 New ROI = 50 51 What incentives might a manager have to dispose of assets? 53 54 55 56 57 E12-8 Ready Wx Accessibility. Investigate