Marine Division of Sando Company Reported Net Operating Profit After

question 98

Multiple Choice

Marine Division of Sando Company reported net operating profit after taxes of $27,000 in 2014. The cost of capital was 14 percent and the invested capital was $150,000. Current year R&D expense is $80,000. If R&D had been capitalized, amortization would have been $20,000 for 2014. The income tax rate is 30 percent. How much is adjusted NOPAT to be used in calculating EVA for 2014?

• A) $45,000
• B) $41,000
• C) ($15,000)
• D) $69,000

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Definitions:

Cytosol

The fluid component inside a cell, separate from organelles or structures enclosed by membranes, where various cellular processes occur.

Cisternae

Flattened membrane disks or sacs making up the Golgi apparatus, involved in modifying, sorting, and packaging proteins.

Chromatin

Complex of DNA and proteins that forms chromosomes within the nucleus of eukaryotic cells.

Nucleoli

Structures within the nucleus of a cell, involved in ribosomal RNA synthesis and ribosome assembly.