Tibbs IncHad the Following Data for the Year Ending 12/31/12: Net

question 72

Multiple Choice

Tibbs Inc.had the following data for the year ending 12/31/12: Net income = $300; Net operating profit after taxes (NOPAT) = $400; Total assets = $2,500; Short-term investments = $200; Shareholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,300.What was its return on invested capital (ROIC) ?

• A)14.91%
• B)15.70%
• C)16.52%
• D)17.39%

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Definitions:

Resale Value

The estimated market value of an asset at the end of its useful life or the price at which it can be sold again.

Office Furniture

Items and fixtures used in an office environment for working and organisational purposes, such as desks, chairs, and filing cabinets.

Straight-Line Method

A depreciation technique that allocates an equal portion of an asset's cost to each year of its useful life.

Resale Value

The estimated amount for which an asset can be sold at the end of its useful life.