Exhibit 14 -Refer to Exhibit 14

question 54

Multiple Choice

Exhibit 14.6
Use the Information Below for the Following Problem(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm.
$\begin{array}{c}\begin{array}{lll}\text{LIFO reserve}\\\text{Net plant, property, and equipment}\\ \text{Other assets}\\\text{Goodwill}\\\text{Accumulated Goodwill amortized}\\\text{PV of Operating leases}\\\text{Tax benefit from interest on expenses}\\\text{Tax benefit from interest on leases}\\\text{Taxes on non-operating income}\\\text{Implied interest on op. lease}\\\text{Increase in LIFO reserve}\\\text{Goodwill amortization}\\\text{Operating profit}\\\text{Income tax expense}\\\text{Net working capital}\\\text{WACC}\\\end{array}\begin{array}{lll}&&\end{array}\begin{array}{lll}60\\1325 \\325 \\325 \\65 \\140\\10\\5\\2\\9.5\\12\\15\\550\\215\\440\\0.12\\\end{array}\end{array}$
-Refer to Exhibit 14.6.Calculate the firm's EVA.

• A) 85.2
• B) 72.3
• C) 65.8
• D) 89.5
• E) 78.2

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Definitions:

Sales Mix

This refers to the composition of different products or services sold by a company, impacting the overall profitability.

Bins

Storage containers or spaces used to organize and hold items, often within a warehouse or for inventory management.

Unit Selling Price

The cost at which customers can purchase an individual unit of an item.

Enterprise Product

A product or service designed for large organizations, emphasizing robustness, scalability, and integration capabilities.