Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rome Deposit, Inc. has the following balance sheet and income statement. Income Statement ( $ millions ) Balance Sheet ( $ millions ) Net sales

Rome Deposit, Inc. has the following balance sheet and income statement.
Income Statement ($ millions) Balance Sheet ($ millions)
Net sales $ 4,600.00 Assets
Expenses 2,100.00 Current assets $ 4,800.00
Depreciation 850.00 Net fixed assets 6,900.00
Taxable income $ 1,650.00 Total assets $ 11,700.00
Interest expense 790.00
Taxable income $ 860.00 Liabilities & Owner's Equity
Taxes (35%)301.00 Current liabilities $ 1,200.00
Net income $ 559.00 Long-term debt 4,200.00
Owner's equity 6,300.00
Total liabilities and equity $ 11,700.00
a. What is the companys after-tax operating income? (Enter your answer in millions and round to one decimal places.)
b. What is the companys total capitalization? (Enter your answer in millions and round to the nearest dollar.)
c. What is the companys return on capital? (Enter your answer as a percent rounded to 2 decimal places.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essentials Of Machine Learning In Finance And Accounting

Authors: Mohammad Zoynul Abedin, M. Kabir Hassan, Petr Hajek, Mohammed Mohi Uddin

1st Edition

0367480816, 978-0367480813

More Books

Students also viewed these Finance questions

Question

=+19.1. Suppose that u(12) and fe L". Show that IfIl, Ilfilo.

Answered: 1 week ago