Taking the same information on Z Corporation, perform a Penman reformulation of the balance sheet and income statement. (Financial Statement Analysis and Security Valuation - Fifth Edition)

Then compute the after tax rate of return on invested capital and the effective after tax rate of interest on debt.

Does that imply the firm has flexibility to borrow more and invest more money in operating cost?

Cash				136
AR				255
Inventory				460
Mark securities				272
Net FA				750
				1873
AP				358
Accrued expense				370
NP				225
LTD				720
Common stock				40
Retained earn				137
Accum other				23
				1873
Sales				200
COS				-52
SGA				-26
Oper income				122
Interest income				10
Interest expense				-49.55
EBT				82.45
Tax at 40 percent				-32.98
Net income				49.47
Other accum comp income				12
Comp income				61.47