Use the Table for the Question(s)below

question 99

Multiple Choice

Use the table for the question(s) below.
Consider the following balance sheet:
-Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its excess cash in 2019 is $23.4.If EBIT is $41.2 million and tax rate is 21%,its Return on Invested Capital in 2019 is closest to:

• A)0.104.
• B)0.064.
• C)0.038.
• D)0.083.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the payor's ledger but have not yet cleared the bank.

Adjusted Cash Balance

The cash amount reported after adjustments are made for checks outstanding, deposits in transit, and other discrepancies.

Check Register

A record of all checks written, deposits made, and balances for an individual’s or organization’s checking account.

Bank Statement

An official summary issued by a bank detailing a customer's transactions and balance over a specified period.