SlideShare a Scribd company logo
1 of 1
Download to read offline
Solution
3
Capital = Total Assets – Current Liabilities
= $159,000 - $48,000
= $111,000
Income before interest and after taxes = EBIT x (1- Tax rate)
= 26000 x (1-.4167)
= $15,165.80
Return on capital(2008) = Income before interest and after taxes/ Capital
= $15,165.80 / $111,000
= 13.66%
Return on capital (2005) = (10000 x (1-.4444)/ (93000 -21000)
= 5555.55/72000
= 7.71%
Improvement = 13.66%-7.71%
= 5.94%

More Related Content

More from deepakangel

Halfway titration Half of the base is neutralise.pdf
                     Halfway titration Half of the base is neutralise.pdf                     Halfway titration Half of the base is neutralise.pdf
Halfway titration Half of the base is neutralise.pdfdeepakangel
 
The HTML canvas element is used to draw graphics on a web page.T.pdf
The HTML canvas element is used to draw graphics on a web page.T.pdfThe HTML canvas element is used to draw graphics on a web page.T.pdf
The HTML canvas element is used to draw graphics on a web page.T.pdfdeepakangel
 
Fluorescein has a OH group and a COOH group. If a.pdf
                     Fluorescein has a OH group and a COOH group. If a.pdf                     Fluorescein has a OH group and a COOH group. If a.pdf
Fluorescein has a OH group and a COOH group. If a.pdfdeepakangel
 
Q1ROMThe boot loader basically put Hex code into already there .pdf
Q1ROMThe boot loader basically put Hex code into already there .pdfQ1ROMThe boot loader basically put Hex code into already there .pdf
Q1ROMThe boot loader basically put Hex code into already there .pdfdeepakangel
 
Raising the temperature changes the solubility of a substance in wat.pdf
Raising the temperature changes the solubility of a substance in wat.pdfRaising the temperature changes the solubility of a substance in wat.pdf
Raising the temperature changes the solubility of a substance in wat.pdfdeepakangel
 
MAN pages.These pages describes commands functions and there prope.pdf
MAN pages.These pages describes commands functions and there prope.pdfMAN pages.These pages describes commands functions and there prope.pdf
MAN pages.These pages describes commands functions and there prope.pdfdeepakangel
 
If a person has inability to present antigens to Tc cells (cytotoxic.pdf
If a person has inability to present antigens to Tc cells (cytotoxic.pdfIf a person has inability to present antigens to Tc cells (cytotoxic.pdf
If a person has inability to present antigens to Tc cells (cytotoxic.pdfdeepakangel
 
i didnt get your question its unclear do you mean conjunctive .pdf
i didnt get your question its unclear do you mean conjunctive .pdfi didnt get your question its unclear do you mean conjunctive .pdf
i didnt get your question its unclear do you mean conjunctive .pdfdeepakangel
 
Here is the code with comments for the question. Sample output is al.pdf
Here is the code with comments for the question. Sample output is al.pdfHere is the code with comments for the question. Sample output is al.pdf
Here is the code with comments for the question. Sample output is al.pdfdeepakangel
 
Embedded systemIt is a computer system with a dedicated function .pdf
Embedded systemIt is a computer system with a dedicated function .pdfEmbedded systemIt is a computer system with a dedicated function .pdf
Embedded systemIt is a computer system with a dedicated function .pdfdeepakangel
 
Factors.javaimport java.io.; import java.util.Scanner; class .pdf
Factors.javaimport java.io.; import java.util.Scanner; class .pdfFactors.javaimport java.io.; import java.util.Scanner; class .pdf
Factors.javaimport java.io.; import java.util.Scanner; class .pdfdeepakangel
 
couldnt sloveSolutioncouldnt slove.pdf
couldnt sloveSolutioncouldnt slove.pdfcouldnt sloveSolutioncouldnt slove.pdf
couldnt sloveSolutioncouldnt slove.pdfdeepakangel
 
date of recordSolutiondate of record.pdf
date of recordSolutiondate of record.pdfdate of recordSolutiondate of record.pdf
date of recordSolutiondate of record.pdfdeepakangel
 
Dividend recieved deduction causes a temporary difference between ta.pdf
Dividend recieved deduction causes a temporary difference between ta.pdfDividend recieved deduction causes a temporary difference between ta.pdf
Dividend recieved deduction causes a temporary difference between ta.pdfdeepakangel
 
d)y = (x+7.1)^2 x-4This is how you should represent the Fortra.pdf
d)y = (x+7.1)^2  x-4This is how you should represent the Fortra.pdfd)y = (x+7.1)^2  x-4This is how you should represent the Fortra.pdf
d)y = (x+7.1)^2 x-4This is how you should represent the Fortra.pdfdeepakangel
 
Answer 7. Danielle will produce eggs with allele i as her blood grou.pdf
Answer 7. Danielle will produce eggs with allele i as her blood grou.pdfAnswer 7. Danielle will produce eggs with allele i as her blood grou.pdf
Answer 7. Danielle will produce eggs with allele i as her blood grou.pdfdeepakangel
 
Answersb. multipath (when two or more signals arrive at the recev.pdf
Answersb. multipath (when two or more signals arrive at the recev.pdfAnswersb. multipath (when two or more signals arrive at the recev.pdf
Answersb. multipath (when two or more signals arrive at the recev.pdfdeepakangel
 
A population is a group of individuals that belong to the same speci.pdf
A population is a group of individuals that belong to the same speci.pdfA population is a group of individuals that belong to the same speci.pdf
A population is a group of individuals that belong to the same speci.pdfdeepakangel
 
2. Write the equilibrium constant expression forSolution2. Wr.pdf
2. Write the equilibrium constant expression forSolution2. Wr.pdf2. Write the equilibrium constant expression forSolution2. Wr.pdf
2. Write the equilibrium constant expression forSolution2. Wr.pdfdeepakangel
 
1.ploidy refers to the number of complete sets of chromosomes in an .pdf
1.ploidy refers to the number of complete sets of chromosomes in an .pdf1.ploidy refers to the number of complete sets of chromosomes in an .pdf
1.ploidy refers to the number of complete sets of chromosomes in an .pdfdeepakangel
 

More from deepakangel (20)

Halfway titration Half of the base is neutralise.pdf
                     Halfway titration Half of the base is neutralise.pdf                     Halfway titration Half of the base is neutralise.pdf
Halfway titration Half of the base is neutralise.pdf
 
The HTML canvas element is used to draw graphics on a web page.T.pdf
The HTML canvas element is used to draw graphics on a web page.T.pdfThe HTML canvas element is used to draw graphics on a web page.T.pdf
The HTML canvas element is used to draw graphics on a web page.T.pdf
 
Fluorescein has a OH group and a COOH group. If a.pdf
                     Fluorescein has a OH group and a COOH group. If a.pdf                     Fluorescein has a OH group and a COOH group. If a.pdf
Fluorescein has a OH group and a COOH group. If a.pdf
 
Q1ROMThe boot loader basically put Hex code into already there .pdf
Q1ROMThe boot loader basically put Hex code into already there .pdfQ1ROMThe boot loader basically put Hex code into already there .pdf
Q1ROMThe boot loader basically put Hex code into already there .pdf
 
Raising the temperature changes the solubility of a substance in wat.pdf
Raising the temperature changes the solubility of a substance in wat.pdfRaising the temperature changes the solubility of a substance in wat.pdf
Raising the temperature changes the solubility of a substance in wat.pdf
 
MAN pages.These pages describes commands functions and there prope.pdf
MAN pages.These pages describes commands functions and there prope.pdfMAN pages.These pages describes commands functions and there prope.pdf
MAN pages.These pages describes commands functions and there prope.pdf
 
If a person has inability to present antigens to Tc cells (cytotoxic.pdf
If a person has inability to present antigens to Tc cells (cytotoxic.pdfIf a person has inability to present antigens to Tc cells (cytotoxic.pdf
If a person has inability to present antigens to Tc cells (cytotoxic.pdf
 
i didnt get your question its unclear do you mean conjunctive .pdf
i didnt get your question its unclear do you mean conjunctive .pdfi didnt get your question its unclear do you mean conjunctive .pdf
i didnt get your question its unclear do you mean conjunctive .pdf
 
Here is the code with comments for the question. Sample output is al.pdf
Here is the code with comments for the question. Sample output is al.pdfHere is the code with comments for the question. Sample output is al.pdf
Here is the code with comments for the question. Sample output is al.pdf
 
Embedded systemIt is a computer system with a dedicated function .pdf
Embedded systemIt is a computer system with a dedicated function .pdfEmbedded systemIt is a computer system with a dedicated function .pdf
Embedded systemIt is a computer system with a dedicated function .pdf
 
Factors.javaimport java.io.; import java.util.Scanner; class .pdf
Factors.javaimport java.io.; import java.util.Scanner; class .pdfFactors.javaimport java.io.; import java.util.Scanner; class .pdf
Factors.javaimport java.io.; import java.util.Scanner; class .pdf
 
couldnt sloveSolutioncouldnt slove.pdf
couldnt sloveSolutioncouldnt slove.pdfcouldnt sloveSolutioncouldnt slove.pdf
couldnt sloveSolutioncouldnt slove.pdf
 
date of recordSolutiondate of record.pdf
date of recordSolutiondate of record.pdfdate of recordSolutiondate of record.pdf
date of recordSolutiondate of record.pdf
 
Dividend recieved deduction causes a temporary difference between ta.pdf
Dividend recieved deduction causes a temporary difference between ta.pdfDividend recieved deduction causes a temporary difference between ta.pdf
Dividend recieved deduction causes a temporary difference between ta.pdf
 
d)y = (x+7.1)^2 x-4This is how you should represent the Fortra.pdf
d)y = (x+7.1)^2  x-4This is how you should represent the Fortra.pdfd)y = (x+7.1)^2  x-4This is how you should represent the Fortra.pdf
d)y = (x+7.1)^2 x-4This is how you should represent the Fortra.pdf
 
Answer 7. Danielle will produce eggs with allele i as her blood grou.pdf
Answer 7. Danielle will produce eggs with allele i as her blood grou.pdfAnswer 7. Danielle will produce eggs with allele i as her blood grou.pdf
Answer 7. Danielle will produce eggs with allele i as her blood grou.pdf
 
Answersb. multipath (when two or more signals arrive at the recev.pdf
Answersb. multipath (when two or more signals arrive at the recev.pdfAnswersb. multipath (when two or more signals arrive at the recev.pdf
Answersb. multipath (when two or more signals arrive at the recev.pdf
 
A population is a group of individuals that belong to the same speci.pdf
A population is a group of individuals that belong to the same speci.pdfA population is a group of individuals that belong to the same speci.pdf
A population is a group of individuals that belong to the same speci.pdf
 
2. Write the equilibrium constant expression forSolution2. Wr.pdf
2. Write the equilibrium constant expression forSolution2. Wr.pdf2. Write the equilibrium constant expression forSolution2. Wr.pdf
2. Write the equilibrium constant expression forSolution2. Wr.pdf
 
1.ploidy refers to the number of complete sets of chromosomes in an .pdf
1.ploidy refers to the number of complete sets of chromosomes in an .pdf1.ploidy refers to the number of complete sets of chromosomes in an .pdf
1.ploidy refers to the number of complete sets of chromosomes in an .pdf
 

Recently uploaded

Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityGeoBlogs
 
The byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptxThe byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptxShobhayan Kirtania
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfJayanti Pande
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformChameera Dedduwage
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13Steve Thomason
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introductionMaksud Ahmed
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfsanyamsingh5019
 
Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...Pooja Nehwal
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsTechSoup
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingTechSoup
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxheathfieldcps1
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3JemimahLaneBuaron
 
Arihant handbook biology for class 11 .pdf
Arihant handbook biology for class 11 .pdfArihant handbook biology for class 11 .pdf
Arihant handbook biology for class 11 .pdfchloefrazer622
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAssociation for Project Management
 
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...anjaliyadav012327
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdfQucHHunhnh
 

Recently uploaded (20)

Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
 
The byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptxThe byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptx
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
A Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy ReformA Critique of the Proposed National Education Policy Reform
A Critique of the Proposed National Education Policy Reform
 
The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13The Most Excellent Way | 1 Corinthians 13
The Most Excellent Way | 1 Corinthians 13
 
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"Mattingly "AI & Prompt Design: The Basics of Prompt Design"
Mattingly "AI & Prompt Design: The Basics of Prompt Design"
 
Advance Mobile Application Development class 07
Advance Mobile Application Development class 07Advance Mobile Application Development class 07
Advance Mobile Application Development class 07
 
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptxINDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
INDIA QUIZ 2024 RLAC DELHI UNIVERSITY.pptx
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
 
Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
 
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
Mattingly "AI & Prompt Design: Structured Data, Assistants, & RAG"
 
Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3Q4-W6-Restating Informational Text Grade 3
Q4-W6-Restating Informational Text Grade 3
 
Arihant handbook biology for class 11 .pdf
Arihant handbook biology for class 11 .pdfArihant handbook biology for class 11 .pdf
Arihant handbook biology for class 11 .pdf
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
 
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 

Solution 3Capital = Total Assets – Current Liabilities          .pdf

  • 1. Solution 3 Capital = Total Assets – Current Liabilities = $159,000 - $48,000 = $111,000 Income before interest and after taxes = EBIT x (1- Tax rate) = 26000 x (1-.4167) = $15,165.80 Return on capital(2008) = Income before interest and after taxes/ Capital = $15,165.80 / $111,000 = 13.66% Return on capital (2005) = (10000 x (1-.4444)/ (93000 -21000) = 5555.55/72000 = 7.71% Improvement = 13.66%-7.71% = 5.94%