Berry Corporation reports the following information. Year 7Year 6Cash $12,768 $11,592Net operating working capital$4,920 $2,640Net long-term operating assets$7,488$7,440Net nonoperating obligations$2,160 $1,680Net operating profit after tax$1,560 $1,296Weighted average cost of capital7.0%7.0% What is the company's residual operating income (ROPI) for Year 7? $ 666 $ 922 $1,454 $ 854 None of these are correct.

Residual operating income of the company is the Net operating profit after tax of current year minus…

Answered: Berry Corporation reports the following…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 10PROB

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Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net income of $40 million. Included in the income was interest expense of $2,800,000. The companys tax rate was 40%. Total assets were $470 million, current liabilities were $104,000,000, and $72,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon?
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Refer to the following financial information of Scholz Company: NOPAT 8,250,000.00 EBITDA 17,725,000.00 Net Income 5,050,000.00 Capital Expenditures 6,820,000.00 After tax capital costs 6,280,000.00 Tax rate 40% Calculate the Company’s depreciation and amortization expense

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	Year 7	Year 6
Cash	$12,768	$11,592
Net operating working capital	$4,920	$2,640
Net long-term operating assets	$7,488	$7,440
Net nonoperating obligations	$2,160	$1,680
Net operating profit after tax	$1,560	$1,296
Weighted average cost of capital	7.0%	7.0%