MetaQuantify the Effects of Managerial Actions on ROPI and Components
BCS Enterprises reports the following financial data just prior to its fiscal year ended June $ millions
BCS Enterprises
Balance Sheet
Cash $ Accounts payable $
Accounts receivable Longterm debt
Inventory
Property, plant & equipment Equity
Total assets $ Total liabilities and equity $
Actual Forecasted
June June
Sales $ $
NOPAT $ $
NOA $ $
WACC
a Compute ROPI for FY and FY Net operating assets NOA at June were $
Round answers to one decimal place, if applicable.
ROPI Answer
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b The company is contemplating taking the following actions before the end of June These actions are not reflected in any of the financial data reported above. For each of the actions, determine the effect on residual operating income for the fiscal year ended June
Reduce inventory by which reduces accounts payable by
Decrease property, plant and equipment PPE by with no consequent impact on NOPAT.
Engage in a sale leaseback of a major building. The company will sell of its PPE at book value and increase rental costs by $ after tax, per year.
Increase debt $ which increases interest expense by $
Round answers to one decimal place, if applicable.
Actual Forecasted Action
June June
NOPAT Answer
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NOABeg Answer
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ROPI Answer
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