Question 1
Tibbs Inc. had the following data for the year ended December 31, 2020: Net income = $500; Net operating profit after taxes (NOPAT) = $600; Total assets = $3,400; Short-term investments = $400; Shareholders’ equity = $2,200; Total debt = $1,200; and Total operating capital = $2,800. What was its return on invested capital (ROIC)?
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19.96%
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20.07%
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21.43%
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22.39%
Question 2
To estimate a firm’s cash flow from operations, depreciation is added back to net income. Which of the following is true regarding depreciation?
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Depreciation is an extraordinary expense that is not always deducted when calculating net income, and it should not be added back to net income when calculating a firm’s cash flow from operations.
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Depreciation is an extraordinary expense that is not always deducted when calculating net income, and it must be added back to net income when calculating a firm’s cash flow from operations.
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Depreciation is a noncash expense resulting from the purchase of fixed assets, but it should not be added back to net income when determining a firm’s cash flow from operations.
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Depreciation is a noncash expense resulting from the purchase of fixed assets, and it must be added back to net income when determining a firm’s cash flow from operations.
Humpback swimming on its back in Antarctica
Sperm whale arching back in preparation to dive off Dominica
Heavy fuel droplets separate as they flow around an abrupt bend in an intake manifold.
Brush off the back. Apply several long brushing strokes from head to hips to finish the session.
Income Inequality in the United States: 1947–2009
The large, white flowers of giant saguaro cactus (Carnegiea gigantea) produce sweet nectar. The flow