Compute net operating profit after tax

Assignment Help Financial Accounting

Reference no: EM131202133

YOU MUST SHOW THE DETAILS OF HOW YOU DERIVED YOUR RATIOS 1. Compute net operating profit after tax (NOPAT) for 2014. Assume that the combined federal and state statutory tax rate is 37%. 2. Compute net operating assets (NOA) for 2014 and 2013. Where applicable, treat noncurrent investments as a non-operating item. (Hint: Assume that trading assets and long-term marketable equity securities are investments in marketable securities and are therefore, non-operating assets; also, footnotes reveal that the other longterm investments are mainly loan receivables and are, therefore, operating.) 3. Compute RNOA and disaggregate it into net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2014. 4. Demonstrate that RNOA = NOPM X NOAT. 5. Comment on the drivers of RNOA for the two companies. 6. Compute net non-operating obligations (NNO) for 2014 and 2013. Confirm the relation: NOA = NNO + Stockholders’ equity. 7. Compute return on equity (ROE) for 2014. 8. What is the non-operating return component of ROE for 2014? 9. Comment on the difference between ROE and RNOA. What inference can we draw from this comparison? REQUIRED: Compare the financial viability of the two companies (Intel and 3M), and provide a brief argument for why you will invest in any one of the two companies. You must provide a brief description of each company and its business. You must provide a comparative analysis of the ratios listed, and answer the related questions above. Your answers will be graded for its consistency with information reported on your ratio calculations and references to knowledge obtained from the course materials.

Reference no: EM131202133

Questions Cloud

How much was paid to the common stockholders : Bellamy Corporation paid $100,000 in dividends. The corporation had 10,000 shares of common stock outstanding and 5,000 shares of $100 par value 5% preferred stock. The preferred stock was two years in arrears prior to the current year. How much was ..

Uncommon for anyone employed in the field of taxation : It is uncommon for anyone employed in the field of taxation, whether they be accountants, attorneys or IRS employees, to know, every section in the Internal Revenue Code, their unique requirements, the rules in the Treasury Regulations accompanying e..

Assume that all costs are fixed and except supply costs : You are considering starting a walk-in clinic. Assume that all costs are fixed, except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 per-cent rate.

Determining gross profit during the current year : Determining Gross Profit During the current year, merchandise is sold for $4,885,000. The cost of the merchandise sold is $3,028,700. What is the amount of the gross profit? Compute the gross profit percentage (gross profit divided by sales).

Compute net operating profit after tax : YOU MUST SHOW THE DETAILS OF HOW YOU DERIVED YOUR RATIOS. Compute net operating profit after tax (NOPAT) for 2014. Assume that the combined federal and state statutory tax rate is 37%. Compute net operating assets (NOA) for 2014 and 2013.

Job order costing system-process costing accounting system : Would a job order costing system or process costing accounting system be used for this production process? Define and describe each costing system. Give specific reasons for the choice of which costing system would be most appropriate for this manufa..

Review of the tax receivable subsidiary ledger indicates : A review of the Tax Receivable subsidiary ledger indicates the following: $20,000 would be received 120 days after year-end. $45,000 would be received 90 days after year-end. $22,000 would be received 60 days after year-end.

Complete budgeted income statement for quarter two : Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Complete I..

Certain representations and media tropes may fall out of use : Though times may change, and certain representations and media tropes may fall out of use, either because of complaints from minority advocacy groups or because of evolving cultural norms, it is disheartening to observe that oftentimes just as one ma..

User Account

All Pages