Last Year a Firm Had Sales of $200,000

question 59

Multiple Choice

Last year a firm had sales of $200,000. Its cost of goods sold was $75,000, and administrative and marketing expenses were $25,000 each. Depreciation expense was $10,000, while interest expense was $15,000. If the tax rate is 30%, what was the firm's NOPAT last year?

• A) $19,500
• B) $35,000
• C) $45,500
• D) $52,500
• E) $80,500

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Definitions:

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and relaxing the body by slowing the heart rate and increasing intestinal and glandular activity.

Somatic Nervous System

Part of the peripheral nervous system that governs voluntary movements and transmits sensory and motor information to and from the central nervous system.

Central Nervous System

The system of neural tissue responsible for regulating bodily actions, consisting of both the brain and the spinal cord.

University of Michigan

A public research university in Ann Arbor, Michigan, known for its diverse and extensive research programs.