Last Year,Lenny's Lemonade Had $3,500 in Sales,and Cost of Goods

question 16

Multiple Choice

Last year,Lenny's Lemonade had $3,500 in sales,and cost of goods sold was $2,000.Depreciation expenses totaled $500 and interest expense was $700.If the tax rate is 25%,what is the net profit margin for Lenny's Lemonade? What is its NOPAT margin?

• A)6.43% and 21.43%
• B)20.7% and 21.43%
• C)2.14% and 32.14%
• D)22.86% and 32.14%

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