Compute net operating profit after tax (NOPAT) for Intel 2014. Assume that the f
ID: 2417055 • Letter: C
Question
Compute net operating profit after tax (NOPAT) for Intel 2014. Assume that the federal and state statutory tax rate is 37%.
Net revenue is $55,870
cost of sales $20,261
gross margin $35,609
Research and development $11,537
Marketing, general administrative $8,136
Restructuring and asset impairment charges $295
Amoritzation of Aquisition related intangibles $294
Operating expenses $20,262
Operating income $15,347
Gains on equity investments $411
Interest and other net $43
Income before taxes$15,801
Provision for taxes $4097
Net Income $11,704
Earnings per share of common stock $2.39
Diluted earnings per share of common stock $2.31
weighted average shares of common stock: Basic $4,901
Diluted:$5,056
Net Inocme $11,704
Explanation / Answer
Answer:
Net Operating Profit After Tax = Net Operating INcome before Interest and Taxes x (1 - Tax Rate) = $15,347 x (1 - 0.37) = $9,668.61
Net Operating Profit means profit from operating activities before interest and taxes.
Net Operating Profit after tax means operating profit before interest but after adjusting taxes impact.
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