Exhibit 14 -Refer to Exhibit 14

question 75

Multiple Choice

Exhibit 14.6
Use the Information Below for the Following Problem(S)
You are provided with the following information on Kayray Corporation. Your ultimate objective is to calculate the EVA for the firm.
$\begin{array}{c}\begin{array}{lll}\text{LIFO reserve}\\\text{Net plant, property, and equipment}\\ \text{Other assets}\\\text{Goodwill}\\\text{Accumulated Goodwill amortized}\\\text{PV of Operating leases}\\\text{Tax benefit from interest on expenses}\\\text{Tax benefit from interest on leases}\\\text{Taxes on non-operating income}\\\text{Implied interest on op. lease}\\\text{Increase in LIFO reserve}\\\text{Goodwill amortization}\\\text{Operating profit}\\\text{Income tax expense}\\\text{Net working capital}\\\text{WACC}\\\end{array}\begin{array}{lll}&&\end{array}\begin{array}{lll}60\\1325 \\325 \\325 \\65 \\140\\10\\5\\2\\9.5\\12\\15\\550\\215\\440\\0.12\\\end{array}\end{array}$
-Refer to Exhibit 14.6.Calculate the adjusted operating profits before taxes.

• A) $586.5
• B) $225.64
• C) $825.23
• D) $831.56
• E) $692.5

---

Definitions:

Shell Shock

An outdated term once used to describe the psychological trauma experienced by soldiers during war, now understood as a form of post-traumatic stress disorder (PTSD).

Type A Personality

A personality type characterized by high levels of competitiveness, self-urgency, hostility, and a constant sense of time pressure.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, arrhythmias, heart valve problems, and heart failure.

Impatience

The feeling of being annoyed by someone's mistakes or because you have to wait.