$1,500; Baby Camels Inc. had the following data for the year ending 12/31/12: Net income = EBIT $3,225; Tax Rate = 45%; Total assets = $4,900; Short-term investments = $600; Stockholders' equity = $2,000; Total debt = $1,900; and Total operating capital = $4,475. What was its return on invested capital (ROIC)?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 53E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Baby Camels Inc. had the following data for the year ending 12/31/12: Net income = $1,500;
EBIT $3,225; Tax Rate = 45%; Total assets = $4,900; Short-term investments = $600;
=
Stockholders' equity = $2,000; Total debt = $1,900; and Total operating capital = $4,475.
What was its return on invested capital (ROIC)?
O 30.61%
33.52%
39.64%
65.82%
○ 72.07%
Transcribed Image Text:Baby Camels Inc. had the following data for the year ending 12/31/12: Net income = $1,500; EBIT $3,225; Tax Rate = 45%; Total assets = $4,900; Short-term investments = $600; = Stockholders' equity = $2,000; Total debt = $1,900; and Total operating capital = $4,475. What was its return on invested capital (ROIC)? O 30.61% 33.52% 39.64% 65.82% ○ 72.07%
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