Baker Industries’ net income is $24000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $80000, and common equity equals $250000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. ROE and ROIC Net income $24,000 Interest expense $6,000 Tax rate 40.00% Notes payable $27,000 Long-term debt $80,000 Common equity $250,000 Formulas ROE #N/A Partial Income Statement: EBIT #N/A Interest $6,000.00 EBT #N/A Taxes #N/A Net income $24,000.00 Capital Summary: Notes payable $27,000.00 Long-term debt $80,000.00 Common equity $250,000.00 Total invested capital #N/A ROIC #N/A

Baker Industries’ net income is $24000, its interest expense is $6000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals $80000, and common equity equals $250000. The firm finances with only debt and common equity, so it has no preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. ROE and ROIC Net income $24,000 Interest expense $6,000 Tax rate 40.00% Notes payable $27,000 Long-term debt $80,000 Common equity $250,000 Formulas ROE #N/A Partial Income Statement: EBIT #N/A Interest $6,000.00 EBT #N/A Taxes #N/A Net income $24,000.00 Capital Summary: Notes payable $27,000.00 Long-term debt $80,000.00 Common equity $250,000.00 Total invested capital #N/A ROIC #N/A

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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bartleby, a Learneo, Inc. business

ROE and ROIC

Net income	$24,000
Interest expense	$6,000
Tax rate	40.00%
Notes payable	$27,000
Long-term debt	$80,000
Common equity	$250,000
		Formulas
ROE		#N/A

Partial Income Statement:
EBIT		#N/A
Interest	$6,000.00
EBT		#N/A
Taxes		#N/A
Net income	$24,000.00

Capital Summary:
Notes payable	$27,000.00
Long-term debt	$80,000.00
Common equity	$250,000.00
Total invested capital		#N/A

ROIC		#N/A