Jackson is a private company whose management accountant team is evaluating the performance of its investment centre. The company manufactures phones. So it is using different measures recommended to look at its success or failure. The tests he wants to carry out are the following using the table below: December 2020 financial information Current liabilities (non interest $ 56,700 bearing) Bond payable Equity Cash A/C Receivable Inventory Non Operating Asset Accumulated Depreciation S 105,000 $ 250,000 S 55,000 $ 43,000 IS 27,900 s 128,90 s 7.500 Operating Expenses Supplies expense Utilities Expense Depreciation Expense Rent expense Training expenses Revenue Uneared Revenue COGS Interest on debt S 14500 8.750 7200 19.200 6700 106,200 14.000 31.000 18.5% 4.5% 7.3% Risk free Rate Cost of debe Market return Market Risk DA in Jan 2020 Tax Rate $210,000 1796 Note: Company uses gross PPE (including accumulated Depreciation] REQUIRED Calculate interest expense, net income tax and EBIT (operating income] Calculate the gross PPE [Plant, Property & Equipment] Calculate cost of equity (re). 4 What is the average operating asset What is the ROI (return on investment) of the company? Use two component method to calculate ROI and indicate which component contributed most [Profitability or efficiency] Calculate Residual Income [RI] What is the main difference in calculating ROI and RI