For fiscal year 2018, Hiroole Department Store had net income of$6,060,000. Interest expense was...

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For fiscal year 2018, Hiroole Department Store had net income of$6,060,000. Interest expense was $2,272,500, and the company’s taxrate on income was 40 percent. Total assets were $80,827,000, andnoninterest-bearing current liabilities were $7,188,000. Thecompany’s cost of capital (required rate of return) is 10 percent.Calculate NOPAT, invested capital, and residual income for HirooleDepartment Store. (Enter negative answers preceding either - sign,e.g. -45 or in parentheses, e.g. (45).) NOPAT $ Invested capital $Residual income $ Comment on the company’s profitability. Thecompany appears .

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Calculation of NOPAT invested capital and residual income for Hiroole Department Store Given Details Net income of 6060000 Interest expense was 2272500 Companys tax rate on income 40 Total assets 80827000 Noninterestbearing current liabilities 7188000 Companys cost of capital required rate of return 10 iNOPAT Net Operating Income After Taxes NOPAT Net Income Interest expense 1 Tax rate 6060000 2272500 140 8332500 1040 8332500 060 NOPAT 4999500 Explanation NOPAT is a profitability measurement that calculates the amount of profits See Answer

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In: AccountingFor fiscal year 2018, Hiroole Department Store had net income of$6,060,000. Interest expense was $2,272,500,...For fiscal year 2018, Hiroole Department Store had net income of$6,060,000. Interest expense was $2,272,500, and the company’s taxrate on income was 40 percent. Total assets were $80,827,000, andnoninterest-bearing current liabilities were $7,188,000. Thecompany’s cost of capital (required rate of return) is 10 percent.Calculate NOPAT, invested capital, and residual income for HirooleDepartment Store. (Enter negative answers preceding either - sign,e.g. -45 or in parentheses, e.g. (45).) NOPAT $ Invested capital $Residual income $ Comment on the company’s profitability. Thecompany appears .