Exercise 12-8

For fiscal year 2017, Crown Point Products had income as follows:

Sales$54,800,000Less:Cost of goods sold38,700,000Selling and administrative expense5,720,000Interest expense1,030,000Income before taxes9,350,000Less income taxes3,272,500Net income$6,077,500

Total assets were $99,000,000, and noninterest-bearing current liabilities were $3,400,000. The company has a required rate of return on invested capital equal to 11 percent.

Calculate NOPAT, invested capital, and ROI for Crown Point Products.(Round ROI to 2 decimal places, e.g. 15.25%.)

NOPAT $________

Invested capital $________

ROI _______%

Comment on the company's profitability.

The company: _______is OR IS NOT PERFORMING WELL?