Question

Following is information from Pinto Corporation for 2017. Total 2017 revenue $1,033,290 Total revenue growth rate 4% Terminal revenue growth rate 1% Net operating profit margin (NOPM) 5.3% Net operating asset turnover (NOAT) 2.10 Projected 2018 total revenue would be: Select one: A. $1,043,623 B. $1,074,622 C. $1,088,054 D. $1,085,368 E. None of the above

Answer 1

Answer:

Explanation:

4% of $1033290 = $41,331.6

1% of $1033290 = $10,332.9

5.3% of $1033290 = $54,764.37

2.1 of $1033290 = $2,169,909

Projected 2018 total revenue is (D) $1,085,368