133. Baker Industries' net income is $27000, its interest expense is $5000, and its tax rate is 40%. Its notes payable equals $27000, long-term debt equals$80000, and common equity equals $240000. The firm finances with only debt and common equity, so it has no preferred stock. The data has beencollected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.Open spreadsheetWhat are the firm's ROE and ROIC? Round your answers to two decimal places. Do not round intermediate calculations.ROEROIC11.25%1% 3AROE and ROICNet incomeInterest expenseTax rateNotes payable0 ROE78Long-term debtCommon equityV5 EBT6 Taxes2 Partial Income Statement:3 EBIT4 InterestNet incomeX✓ fx =B6+B7+B82425 ROIC26279 Capital Summary:0 Notes payable1 Long-term debt2 Common equity3 Total invested capitalB$27,000$5,00040.00%$27,000$80,000$240,00011.25%$5,000.00$18,000.00$27,000.00$27,000.00$80,000.00$240,000.00$347,000.007.78%Formulas=B3/B8#N/A#N/A=(B3/(1-40%) ) 40%=B6+B7+B8=(B3/B23)ELLLFGH

Net Income = ni = $27,000Interest Expenses = i = $5000Tax rate = t = 40%notes payable = np = $27,000…

Answered: Baker Industries' net income is $27000,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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