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What is the RNOA

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Reference no: EM13729246

Before going into year-end closing a company has operating income of $40,000 with a marginal tax rate of 25%. Operating assets are $500,000 and operating liabilities are $200,000.

a. What is the RNOA?

b. If the CFO moves $50,000 of cash into a marketable security (FA) and OL remain the same, what is the new RNOA?

c. What is this an example of?

Reference no: EM13729246

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