Marine Division of Sando Company Reported Net Operating Profit After

question 79

Multiple Choice

Marine Division of Sando Company reported net operating profit after taxes of $27,000 in 2017.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 2017.The income tax rate is 30 percent.How much is adjusted NOPAT to be used in calculating EVA for 2017?

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

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Definitions:

Community Involvement

Participation by individuals or groups in activities and decisions that impact their local community.

Situational Cause

An explanation for behavior or an event that attributes the cause to external factors in the environment or specific situations.

Dispositional Cause

Attributions of behavior to personal characteristics or dispositions rather than situational factors.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.