Edwards Electronics Recently Reported $11,250 of Sales, $5,500 of Operating

question 62

Multiple Choice

Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation.The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%.How much was its net operating profit after taxes (NOPAT) ?

• A) $2,748.96
• B) $2,893.64
• C) $3,045.94
• D) $3,206.25
• E) $3,375.00

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Definitions:

Res Ipsa Loquitur

is a legal doctrine that allows for the assumption of negligence in cases where the accident that occurred is of a type that usually doesn't happen without negligence.

Plaintiff

The party who initiates a lawsuit before a court against another party, known as the defendant.

Elements of Negligence

Refers to the essential components required to establish negligence in a legal context, typically including duty, breach, causation, and damages.

Duty

An obligation required by one's position, societal norms, or law, to conduct oneself in a certain manner.