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Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are
Jane Doe is a private company which a management accountant is analyzing its performance. So it is trying to look at different components that are distributing to its success. The tests he wants to carry out are the following using the table below: Current liabilities 4500 Notes payable 25600 Equity 150000 Personal car 15000 Tax rate 30% Net income 19500 Sales 56200 Interest on debt 8% Canada bond rate TSX index Jan 14850 TSX index Dec 15200 Beta 1.5 Cost of training workers 23000 Research and Development 98000 Current assets $54000 2% REQUIRED 1. Calculate interest expense, tax and EBIT 2. Calculate the operating assets of the company. 3. Calculate ROI and Residual Income 4. What are the major criticisms directed towards the use of Return on Investment. 5. Calculate EVA
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