Exercise 12-8  Calculating ROI - SEE TEXTBOOK PAGE 12-29 For fiscal year 2020, LaundryMate Products had income as follows:                         Sales          $ 55,000,000   Less:             Cost of goods sold      $  38,400,000           Selling and administrative expense          5,700,000       Interest expense            1,000,000       45,100,000   Income before taxes               9,900,000   Less income taxes               1,980,000   Net income          $   7,920,000                    Other pertinent information for 2020 follows:            Total assets        $  97,000,000       Noninterest-bearing current liabilities          3,200,000       Required rate of return on invested capital   10%                       Required               Calculate NOPAT, invested capital, and ROI for LaundryMate Products.                         Income tax rate =      ÷     =                        NOPAT =     + [     × (     )] =                        Invested capital =     ―   =                       ROI =   =                                           Comment on the company's profitability.

Violet Sales Corp, reports the year-end information from 2023 as follows:         Sales (35,500 units)               $284,000         Cost of goods sold                  105,000         Gross margin                           179,000         Operating expenses                152,000         Operating income                   $27,000 Violet is developing the 2024 budget. In 2024 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2024?

Data Section - PROVIDED BY THE CLIENT Unit Sales Sales are expected to increase by 5% every month. The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021. April May 15,000 10,000 June 16,000 July August September 14,000 15,000 Fixed Assets Cost 12,000 Land 150,000.00 Building 205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Method collections from customers: Office Equipment 100,000.00 20% are acquired on May 31, 2021 Cash $8.000 20% are acquired on August 31, 2021 Accounts receivable 107,800 20% are acquired on October 31, 2021 Merchandise inventory 52,800 20% are acquired on December 31, 2021 530,000 $698,600 Fixed assets (net) 20% are acquired on March 31, 2021 Total assets Use the Straight Line Method (5 years) Machinery 75.000.00 5 year Accounts payable (merchandise) Loans Payable Owner's equity Total liabilities & equity $74,800 $400,000 5 year loan, 12% interest taken out on May 31, 2021, paid…

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