Reference no: EM13959099
For fiscal year 2011, LaundryMate Products had income as follows:
Sales ...................$45,000,000
Less:
Cost of goods sold ............$28,400,000
Selling and administrative expense .......$5,600,000
Interest expense .............$1,200,000
Income before taxes ............$9,800,000
Less income taxes .............$3,430,000
Net income ...............$6,370,000
Total assets were $99,000,000, and non interest-bearing current liabilities were $3,500,000. The company has a required rate of return on invested capital equal to 10 percent.
Required:
Calculate NOPAT, invested capital, and ROI for Laundry Mate Products, and comment on the company's profitability.
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