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Use the following information to evaluate the performance of the Best Division. Sales...

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Accounting

  1. Use the following information to evaluate the performance of the Best Division.
    Sales $7,500,000
    Interest expense $600,000
    Net income $1,000,000
    Total assets $6,000,000
    Noninterest-bearing current liabilities $500,000
    Cost of capital 15%
    Tax rate 30%

    Calculate the following items. (3 points each)

    a. NOPAT

    b. Invested capital

    c. Return on investment

    e. Residual income

    f. Profit margin using NOPAT

    g. Evaluate Best Division's performance.

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