I'm specifically looking to understand the calculations for the invested capital portion (especially prepayments) in the ROIC tree

Paul Downs Cabinetmakers Paul Downs started making furniture in 1986 in a small shop in Manayunk, Pennsylvania. (Manayunk, pronounced "Man-ee-yunk," is a hip neighborhood in Philadelphia.) Over the years, his business outgrew four shops and is now operating in a 33,000-square-foot facil- ity in Bridgeport, Pennsylvania. The company focuses on high-end, residential furniture. Figure 6.1(a) shows one of their most popular dining table models. Paul Downs' production facility includes machines and other wood-processing equip ment valued at about $450,000. There is an annual depreciation associated with the machines (reflecting the duration of their useful life) of $80,000. Rents for the showroom and the factory amount to roughly $150,000 per year. Other indirect costs for the compa are about $100,000 per year for marketing related expenses, $180,000 for management and administration, and S60,000 for a highly skilled worker in charge of finishing furniture and conducting a quality inspection. The company has two major types of inventory. There is about $20,000 tied up in raw materials. This is wood that is purchased from suppliers in large order quantities (see Chapter 7 for further details on order quantities). When purchasing wood, Paul Downs needs to pay his suppliers roughly one month in advance of receiving the shipment. There is also about $50,000 of work-in-process inventory. This corresponds to furniture that is in e process of being completed. Furniture production, especially in the high-end segment, is a very manual process and requires a highly skilled workforce. Paul employs 12 cabinetmakers (see Figure 6.1(b) many of whom have been with his company for more than a decade. The cabinetmakers Finished Product and Work in Progress from Paul Downs' Production Facility Paul Downs Cabinetmakers Paul Downs started making furniture in 1986 in a small shop in Manayunk, Pennsylvania. (Manayunk, pronounced "Man-ee-yunk," is a hip neighborhood in Philadelphia.) Over the years, his business outgrew four shops and is now operating in a 33,000-square-foot facil- ity in Bridgeport, Pennsylvania. The company focuses on high-end, residential furniture. Figure 6.1(a) shows one of their most popular dining table models. Paul Downs' production facility includes machines and other wood-processing equip ment valued at about $450,000. There is an annual depreciation associated with the machines (reflecting the duration of their useful life) of $80,000. Rents for the showroom and the factory amount to roughly $150,000 per year. Other indirect costs for the compa are about $100,000 per year for marketing related expenses, $180,000 for management and administration, and S60,000 for a highly skilled worker in charge of finishing furniture and conducting a quality inspection. The company has two major types of inventory. There is about $20,000 tied up in raw materials. This is wood that is purchased from suppliers in large order quantities (see Chapter 7 for further details on order quantities). When purchasing wood, Paul Downs needs to pay his suppliers roughly one month in advance of receiving the shipment. There is also about $50,000 of work-in-process inventory. This corresponds to furniture that is in e process of being completed. Furniture production, especially in the high-end segment, is a very manual process and requires a highly skilled workforce. Paul employs 12 cabinetmakers (see Figure 6.1(b) many of whom have been with his company for more than a decade. The cabinetmakers Finished Product and Work in Progress from Paul Downs' Production Facility