Question
The following presents the balance sheet for Firm K, along with information from the income statement. Calculate the ROIC if the tax rate is 25%.
The following presents the balance sheet for Firm K, along with information from the income statement. Calculate the ROIC if the tax rate is 25%.
Total Assets: 2,000
Current Assets: 600
Revenue: 3,500
Cash: 100
COGS: 2100
Receivables: 200
EBIT: 800
Inventory: 300
Net Income: 200
Noncurrent Assets: 1,400
Net PP&E: 1,100
Other NCA: 300
Total Liabilities: 1,500
Current Liabilities: 700
Current Debt: 250
Payables: 300
Accruals: 150
Noncurrent Liabilities: 800
Long Term Debt: 800
Total Equity: 500
Common Stock 400
Retained Earnings 100
Answer choices:
46.2%
40.0%
30.0%
38.7%
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