FSA (Colgate Assignment)

Shaharyar Naeem
17U00019
Section E

Return on Net Operating Asset (RNOA) = NOPAT / (Beginning NOA + Ending NOA)/2
NOPAT = Operating Income (1-tax rate)
= 4,697,252 (1 – 0.30)
= 3,288,076.4
Beginning NOA = operating assets – operating liabilities
= 8,037,130 – 3,186,802
= 4,850,328
Ending NOA = operating assets – operating liabilities
= 11,052,088 – 3,433,068
= 7,619,020
RNOA = 3,288,076.4 / (4,850,328 + 7,619,020)/2
= 52.74%

NOA 2018 = NFA 2018 + SE 2018

7,619,020 = (Financial liabilities – Financial assets) + 13,304,253
7,619,020 = (12,647 – 5,697,880) + 13,304,253
7,619,020 = -5,685,233 + 13,304,253
7,619,020 = 7,619,020