EP Enterprises Has the Following Income Statement A)$8123
B)$85

question 52

Multiple Choice

EP Enterprises has the following income statement.How much net operating profit after taxes (NOPAT) does the firm have?​ $\begin{array}{lr}\text { Sales } & \$ 1,800.00 \\\text { Costs } & 1,400.00 \\\text { Depreciation } & 250.00 \\\text { EBIT } & \$ 150.00 \\\text { Interest expense } & 70.00 \\\text { EBT } & \$ 80.00 \\\text { Taxes }(40 \%) & 32.00 \\\text { Net income } & \underline {\$ 48.00 }\\\end{array}$

• A)$81.23
• B)$85.50
• C)$90.00
• D)$94.50

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Definitions:

FMV

Fair Market Value, the price that a willing buyer and seller would agree on when both parties are informed and under no pressure to trade.

FMV

Fair Market Value, the price at which a property would sell under normal conditions.

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss on the sale, exchange, or other disposition of the property.

Cash Distribution

Cash Distribution is the payment of funds from a corporation or a financial institution to a shareholder or account holder, often from profits or interest earnings.