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

Question

Quizplus · Accepted Answer

NOPAT = EBIT * (1 - Tax rate)EBIT = Sales - COGS - Administrative expenses - Marketing expenses - Depreciation expenseEBIT = $200,000 - $75,000 - $25,000 - $25,000 - $10,000 = $65,000NOPAT = $65,000 * (1 - 0.3) = $45,500

Last Year a Firm Had Sales of $200,000