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Calculate retum on net operating assets and net borrowing costs for 2021.

Calculate retum on net operating assets and net borrowing costs for 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(b) The income statement for the same firm is as follows (amounts in S thousands): 151,233 Sales 104.372 Cost of goods sold 46,861 12,483 Selling and administrative expenses Interest income 1,123 (5.479) 4,356 Interest expense 10.450 Income tax 19.572 Net income The balance sheet at the end of 2020 reveals financial assets of 18,000 and debt of 78,270 and, at the end of 2021, financial assets of 24,000 and debt of 81,400, again in thousands of $. The firm's marginal tax rate is 37% Calculate return on net operating assets and net borrowing costs for 2021.
Transcribed Image Text:(b) The income statement for the same firm is as follows (amounts in S thousands): 151,233 Sales 104.372 Cost of goods sold 46,861 12,483 Selling and administrative expenses Interest income 1,123 (5.479) 4,356 Interest expense 10.450 Income tax 19.572 Net income The balance sheet at the end of 2020 reveals financial assets of 18,000 and debt of 78,270 and, at the end of 2021, financial assets of 24,000 and debt of 81,400, again in thousands of $. The firm's marginal tax rate is 37% Calculate return on net operating assets and net borrowing costs for 2021.
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