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Rome Deposit, Inc. has the following balance sheet and income statement. Income Statement ($ millions) Balance Sheet ($ millions) Net sales $ 2,200.00 Assets Expenses 900.00 Current assets $ 2,400.00 Depreciation 250.00 Net fixed assets 3,300.00 Taxable income $ 1,050.00 Total assets $ 5,700.00 Interest expense 430.00 Taxable income $ 620.00 Liabilities & Owner's Equity Taxes (35%) 217.00 Current liabilities $ 1,200.00 Net income $ 403.00 Long-term debt 1,800.00 Owner's equity 2,700.00 Total liabilities and equity $ 5,700.00.

a. What is the company’s after-tax operating income?

b. What is the company’s total capitalization? (Enter your answer in millions and round to the nearest dollar.

c. What is the company’s return on capital? (Enter your answer as a percent rounded to 2 decimal places.)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92712042

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