Question

For fiscal year 2017, Crown Point Products had income as follows: Sales $54,000,000 Less: Cost of...

For fiscal year 2017, Crown Point Products had income as follows:

Sales $54,000,000
Less:
Cost of goods sold 38,200,000
Selling and administrative expense 5,670,000
Interest expense 1,030,000
Income before taxes 9,100,000
Less income taxes 3,185,000
Net income $5,915,000
Total assets were $95,000,000, and noninterest-bearing current liabilities were $3,500,000. The company has a required rate of return on invested capital equal to 12 percent.

Calculate NOPAT, invested capital, and ROI for Crown Point Products. (Round ROI to 2 decimal places, e.g. 15.25%.)

NOPAT $
Invested capital $
ROI %
Comment on the company’s profitability.

The company
isis not
performing well.

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