Find the NOPAT Given the Following Information: Sales = $520,000

question 17

Multiple Choice

Find the NOPAT given the following information: sales = $520,000, earnings before interest = $100,000; interest = $20,000; and the tax rate = 30%.

• A) $70,000
• B) $56,000
• C) $30,000
• D) $24,000
• E) $10,000

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Definitions:

Non Oil

Pertaining to economic sectors or industries that are not related to the extraction or processing of oil.

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, entering into contracts, and owning assets.

Inventory Investment

The purchase of goods and materials for future sale or use, representing a business investment in stock.

Proprietorships

The simplest form of business organization owned by a single person, responsible for all the business’s operations and liabilities.