Question
Please help! Cusic Industries had the following operating results for last year; sales = $25,700; cost of goods sold = $18,400; depreciation expense = $3,450;
Please help!
Cusic Industries had the following operating results for last year; sales = $25,700; cost of goods sold = $18,400; depreciation expense = $3,450; interest expense = $790. At the beginning of last year, net fixed assets were $19,280, current assets were $5,100, and current liabilities were $3,400. At the end of last year, net fixed assets were $21,650, current assets were $5,830 and current liabilities were $3,580. The tax rate for last year was 40%. Assume there is no short term investments and notes payable.
a. Construct the Income Statement for Cusic Industries. What was net income for last year?
b. What was NOPAT for last year? What caused the difference between net income and NOPAT?
c. What was Return on Invested Capital?
d. What was the free cash flow for last year? Is this possible? Explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started