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AnnyKZ [126]
1 year ago
13

EP Enterprises has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have?

Business
1 answer:
mezya [45]1 year ago
8 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales = $ 2,000.00

Costs = 1,400.00

Depreciation = 250.00

EBIT = $ 350.00

Interest expense = 70.00

EBT = $280.00

Taxes (25%) = 112.00

Net income = $168.00

Net operating profit after taxes (NOPAT):

= EBIT × (1 - tax rate)

= $350 × (1 - 25%)

= $350 × 0.75

= $262.50

Therefore, the net operating profit after taxes (NOPAT) is $262.5.

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1 year ago
Phil Johnson is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facil
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